Download - Pic of Bharti Airtel
-
7/30/2019 Pic of Bharti Airtel
1/245
-
7/30/2019 Pic of Bharti Airtel
2/245
-
7/30/2019 Pic of Bharti Airtel
3/245
Corporate Inormation
Board o Directors
Mr. Sunil Bharti MittalChairman
Mr. Manoj Kohli
Managing Director & CEO (International)
Mr. Gopal Vittal
Joint Managing Director & CEO (India)
Non-Executive DirectorsMr. Ajay Lal
Ms. Cha Sock Koong
Mr. Craig Ehrlich
Mr. Manish Kejriwal
Mr. Nikesh Arora
Ms. Obiageli Ezekwesili
Mr. Plak Prasad
Mr. Rajan Bharti Mittal
Ms. Tan Yong Choo
Mr. Tsn-yan Hsieh
Group General Counsel & Company Secretary
Mr. Mkesh Bhavnani
Statutory Auditors
M/s. S. R. Batliboi & Associates LLPChartered Accontants
Internal Auditors
M/s. PricewaterhoseCoopers Private Limited
M/s. ANB Conslting Private Limited
Registered & Corporate Oce
Bharti Crescent,1, Nelson Mandela Road,
Vasant Knj, Phase II,
New Delhi 110 070,
India
Website
www.airtel.com
Contents
Statutory Reports
-
7/30/2019 Pic of Bharti Airtel
4/245
A World of Friendships
A World o Friendships
`803.1BnGlobal revenues inRanked globally
4th
4th
Addressablepopulation*
1.8 BnCountry presence
20
A World o Friendships
-
7/30/2019 Pic of Bharti Airtel
5/245Countries where 3G
14In 11 countries*
No. 1Service brand in India*
No. 1
1st
1st
4G network in India
One 3G
-
7/30/2019 Pic of Bharti Airtel
6/245
A World of Friendships
Perormance Highlights
Particulars UnitsFinancial Year Ended March 31
2009 2010 2011 2012 2013
Total Cstomer Base 000s 97,593 137,013 220,878 251,646 271,227
Mobile Services 000s 94,462 131,349 211,919 241,148 259,844
Broadband & Telephone Services 000s 2,726 3,067 3,296 3,270 3,283
Digital TV Services 000s 405 2,597 5,663 7,228 8,100
Based on Consolidated Income Statement
Revene ` Mn 373,521 418,948 595,383 714,508 803,112
EBITDA ` Mn 152,858 168,149 200,718 237,123 248,704
Cash prot rom operations (beore derivative and exchangectation)
` Mn 153,801 162,817 180,581 204,836 208,008
Earnings beore Tax ` Mn 85,910 105,091 76,782 65,183 49,820
Prot ater Tax ` Mn 78,590 89,768 60,467 42,594 22,757
Based on Consolidated Statement o Financial Position
Shareholders Eqity ` Mn 291,279 421,940 487,668 506,113 503,217
Net Debt ` Mn 84,022 23,920 599,512 650,394 638,395
Capital Employed ` Mn 375,301 445,860 1,087,180 1,156,507 1,141,612
Key Ratios
EBITDA Margin % 40.92 40.14 33.71 33.19 30.97
Net Prot Margin % 21.04 21.43 10.16 5.96 2.83
A World o Friendships
-
7/30/2019 Pic of Bharti Airtel
7/245
REVENuE(` Millions)
373,521
08-09
418,948
09-10
595,383
10-11
714,508
11-12
803,112
12-13
CuSTOMER BASE(Nos. 000)
97,593
08-09
137,013
09-10
220,878
10-11
251,646
11-12
271,227
12-13
CASH PROFIT(` Millions)
CAPITAL EMPLOYED(` Millions)
EBITDA(` Millions)
152,858
08-09
168,149
09-10
200,718
10-11
237,123
11-12
248,704
12-13
EBITDA MARGIN(%)
40.92
08-09
40.14
09-10
33.71
10-11
33.19
11-12
30.97
12-13
-
7/30/2019 Pic of Bharti Airtel
8/245
A World of Friendships
Message rom Chairman
Dear Shareholders,
The global economy encontered mltiple challenges
dring the past one year. Even as the uS exhibited signs
o recovery, the Erozone remained saddled with an
nprecedented debt crisis and its attendant slowdown with
several o its members slipping into otright recession.
Emerging markets like India and China too experienced
slowdown in the momentm o growth in the midst o a
decelerating global economy. India in particlar strggled
to nd its bearings in a high inationary sitation and
ended p with one o its lowest growth rates in recent years.
Overall, macroeconomic indicators in Arica remained
largely moderate, thogh, as an economic region, the
Francophone contries contined to be adversely impacted
becase o their strong linkages with the Erozone.
In telecom, the anticipated big shit towards data servicesbecame increasingly visible dring the year. Thogh,
voice still contined to be the mainstay o or bsiness,
we certainly had a clear glimpse o the massive change
nderway in the mobile eco-system and the pattern o
consmption. Riding high on rapidly increasing smartphone
penetration and the increasing data managing capability o
new generation eatre phones, wireless data services grew
by 66% in India. We experienced eqally powerl traction
in the data space in Arican markets. Widening reach and
qality o or 3G networks complemented the changing
indstry dynamics efectively, helping trigger a powerl
mobile internet revoltion in these markets.
Airtel money, crrently available in 18 o the 20 markets
we are present in, is redening banking and commerce in
mltiple ways. The service is making a hge impact on the
nbanked poplation in the Arican markets, particlarlyin remote rral regions with negligible or no banking
inrastrctre. Inspired by this services encoraging take
of, we aspire to be one o the largest mobile banks in these
-
7/30/2019 Pic of Bharti Airtel
9/245
markets in the years to come. With more than one millioncstomers in India, airtel money is ready to scale new
heights in the days to come.
In India, competition did abate dring the year and
normalcy retrned to the market, particlarly in the second
hal. We seem ready or a balanced take-of on this score
in the coming year. On the reglatory ront, however, we
encontered adverse developments on several isses
legality o 3G roaming agreements, one-time spectrmcost, rearming o allotted spectrm in the 900 MHz band
and are crrently litigating on the matter o spectrm
allocation to leading operators in 2002. We rmly believe
that the Company is in compliance on all these isses and
appropriate actions, inclding legal challenges, have been
initiated by the Company.
As a market, Arica contines to be a great learning
experience or s. Despite the sccess o new initiatives likeairtel money and 3G services, we experienced signicant
headwinds in the shape o increased competitive intensity
and challenging market conditions. While political
distrbance and accompanying secrity concerns did afect
or bsiness operations in two o or biggest markets,
Nigeria and Democratic Repblic o Congo (DRC)
reglatory challenges in the orm o demands o additional
taxes and levies rom several reglators also created
some noreseen nancial stress. Notwithstanding these
challenges, I am pleased to inorm yo that we consistently
otpaced market growth and managed to marginally grow
or revene share in these markets dring the year.
The Company moved past another key milestone dring
the year, when or sbsidiary Bharti Inratel sccesslly
completed its Initial Pblic Ofer (IPO) in December
2012 raising ` 41,728 Mn. Enthsiastic participation by
instittional investors rearmed market condence in theCompanys strong balance sheet and tre cash ows.
Listed on the two Indian borses - NSE India and BSE India -
the Bharti Inratel stock is today inclded in the FTSE global
eqity indices as well.
Or people agenda contined to be ocsed on prodctivity
responsibility o Bangladesh and Sri Lanka, Gopal Vittal
took over as the Joint Managing Director & CEO (India).
Over the years, sstainability has not only been intrinsic,
bt invariably complementary to or bsiness agenda. The
bsiness contined to pt in place innovative ways to redce
the carbon ootprint o or operations. Dring the year, wereleased or rst Sstainability Report, which highlights the
diferent dimensions o or engagements with society and
environment. The year also witnessed the strengthening
o or social initiatives in India and Arica. Or eforts at
the Grops philanthropic arm, the Bharti Fondation, were
largely ocsed on consolidation o or operations covering
254 schools - 187 primary, 62 elementary and ve senior
secondary - reaching ot to over 39,000 children across six
states in India. In Arica too, we extended the Or SchoolProgramme to 38 schools across diferent markets catering
to over 18,000 nderprivileged children.
The Board o Directors, which has been the pivotal giding
orce or s over the years, went throgh some signicant
restrctring dring the year. Six members N. Kmar,
Rakesh Bharti Mittal, Akhil Kmar Gpta, H.E. Dr. Salim
Ahmed Salim, Lord Evan Mervyn Davies and Hi Weng
Cheong exited ater long years o meaningl association.My sincere gratitde to them or their sterling contribtion
to the Board over the years. I also take this opportnity to
welcome on Board Manish Kejriwal, Obiageli Ezekwesili and
Gopal Vittal, who joined the Board dring the year.
Overall 2012-13 trned ot to be a year o consolidation
Our subsidiary Bharti Inratel successullycompleted its Initial Public Oer (IPO) inDecember 2012 raising `41,728 Mn. Enthusiasticparticipation by institutional investors rearmedmarket condence in the Companys strongbalance sheet and uture cash fows.
-
7/30/2019 Pic of Bharti Airtel
10/245
A World o Friendships
Message rom MD & CEO (International)
Dear Shareholders,
The last nancial year saw sotening o the mobile market,especially the voice revenes amid increased competitiveintensity in Arica. However, we recorded notable sccessesin or operations and contined to sccesslly lanch keyinitiatives, sch as airtel money, 3G network and the mostinnovative yothl campaigns across many markets.
This year, the political and reglatory environment waschallenging across some o or markets in Arica. Onthe political ront, we experienced some insecrity andviolence in two o or largest markets o Nigeria and DRC,reslting in the loss o property and disrption o bsinessoperations. On the reglatory ront, the reglators areincreasingly becoming stringent on the qality o service ina nmber o contries. We also saw increased demands onadditional taxes and levies rom reglators as the telecomsector is now increasingly being perceived as the cash cowsector in these economies.
We saw an increase in competitive intensity across themarkets, or example in Nigeria; where the market leaderdropped tarifs by arond 30%. However, despite thesechallenges we have still consistently otpaced marketgrowth and steadily grew or revene market share everyqarter.
present where the median age is 18. In line with orobjective o connecting with the Arican yoth, we havelanched innovative yoth campaigns across many marketsin Arica, which have reslted in sccess as seen in Nigeria,DRC, Gabon and Kenya to mention a ew.
We also contined to drive deep distribtion with orretail otlets reaching 1.5 Mn, copled with the rigorosexection o or Zonalisation project with over 100 zonesacross Arica. Special ocs on High Vale Cstomers wasenhanced with the roll ot o the high vale initiative nderthe brand Airtel Premier across eight markets dringthe year.
Dring the year, we sponsored the rst ever pan-Aricanyoth ootball tornament in Nairobi. The Airtel RisingStars programme has been credited as being the biggesttornament on the continent, attracting arond 18,000
school teams and 324,000 players across 15 contries.In addition to mobilising the biggest trnot dring theqalication stages the programme also broke new grondby introdcing girls to this pan-Arican tornament.
In line with or CSR philosophy o spporting the edcationo nderprivileged children, we contined to adopt andspport schools and crrently have 38 schools adoptedacross or markets covering over 18,000 stdents.
We strengthened or Arica Leadership initiative, aiming
to develop the skills and capabilities o or people in allor markets o operation. Or senior leaders attendedDevelopment Programmes at Harvard Bsiness School andINSEAD. Development programmes or all Zonal BsinessManagers rom all three regions were also condcteddring the year. We enhanced or diversity rther byappointing the rst lady Managing Director or or Zambia
The unbanked population o Arica remainshigh (in most countries over 90%) and we areleveraging this opportunity through airtel money.This product enables our customers even inthe rural areas to be connected to the world onance.
-
7/30/2019 Pic of Bharti Airtel
11/245
Message rom JMD & CEO (India)
Dear Shareholders,
The last year has seen a lot o x or s and the indstry.
In a diclt environment, we gained revene share as
well as new cstomers. Besides or operational sccesses,
we also shered in some key initiatives to reinorce or
leadership in the marketplace.
Here are some highlights. Over the corse o the year,
data sage dobled and contines to grow at this pace. Wecreated a world class Network Experience Centre in order
to deliver a brilliant data experience. We were the rst
operator to lanch 4G in or cities helping s learn and
nderstand this emerging technology. We lanched the
Airtel Money Sper Accont in partnership with Axis Bank
that allows cstomers to save and earn interest as well as
take cash ot as per their needs.
Today, or services have the power to transorm lives.Whether it is helping the rban homemaker stay in toch
with her amily and riends, the migrant labor enjoy the
little dose o entertainment and n ater a hard days work
or indeed bsinesses that can dramatically improve their
prodctivity, telecom has an increasingly transormative
India is changing aster than we realise. In addition to
rising incomes, there are two important shits happening
concrrently. First, the demographic shit with an increased
nmber o yong men and women who are crios,
technologically savvy, open minded and qick to adopt new
services. Second, the adoption o mobile internet throgh
bigger and better phones, and its absorption into everydaylives. As we look at these shits, we are incredibly excited
becase we are also strongly positioned to compete in this
new environment.
Or strong brand appeals to yong cstomers as mch as
or established base o 200 Mn cstomers. We have the best
network with tremendos assets o bre and cable systems
on the grond. We are the only Company that ofers the
widest range o telecom services mobile, xed line, 3G, 4G,
Wi-Fi, Fibre, DSL, clod and mobile money. We are children
o competition, who have constantly innovated to transorm
a bsiness with ar-reaching impact, in step with Indias GDP
growth.
As we compete and prepare orselves or growth, we
contine to operate with great responsibility. The Grop
philanthropic arm Bharti Fondation has grown stronger
and or employees have been a sorce o great spport
throgh ACT by volnteering their personal time in theedcation o poor children. Last year, we also lanched
or rst Sstainability Report or the India operations that
presents or approach, initiatives and tre plans or social
and environmental sstainability. We will contine to psh
the envelope this year as well.
We are the only Company that oers the widestrange o telecom services mobile, fxed line, 3G,4G, Wi-Fi, Fibre, DSL, cloud and mobile money. Weare children o competition, who have constantlyinnovated to transorm a business with ar-reachingimpact, in step with Indias GDP growth.
-
7/30/2019 Pic of Bharti Airtel
12/245
A World o Friendships
Board o Directors
Gopal Vittal
Manish Kejriwal
Obiageli
Ezekwesili
Nikesh Arora
-
7/30/2019 Pic of Bharti Airtel
13/245
Rajan Bharti
Mittal
Manoj Kohli
Pulak Prasad
-
7/30/2019 Pic of Bharti Airtel
14/245
A World o Friendships
Awards and Accolades
Achieved the numero no
position among service
brands in 2012 in the Brand
Eqitys Most Trsted
Brands Annal Srvey
Won three indstry
awards at the 8th edition
o the Nigerian Telecoms
Awards (September, 2012)
- Most Innovative TelecomCompany o the Year,
Telecom Brand o the Year
and Cstomer-riendly
Operator o the Year
Bharti Airtels Har ek
riend zaroori hota hai
campaign won three Gold
Ee awards in categories
inclding Telecom &Related Services, Digital
Advertising and Integrated
Advertising
Named Most Socially
Responsible Company in
Niger in March, 2013
Airtel Rising Stars (ARS)
Championships won The
Sponsorship PR Campaign
o the Year at the 12th
PRSK Annal Awards in
December 2012
Conerred with the mostcoveted Porter Prize,named ater the strategygr Michael Porter, inthe Exploiting Trade-ofs
i O b 2012
Airtels myairtel
application won the App
o the Year award or Best
Application sing Network
Application ProgrammingInteraces (APIs) at the
prestigios GSMA Global
Mobile Awards 2013
Bestowed with the Brand
Leadership Award in
Telecom Sector and the
Emerging Brand Award or
airtel money at the BrandLeadership Awards 2012
Felicitated with two awards
in the categories o Vale
Creation and Innovation
& Improvement at the
Conerred with the Star
News Viewers Choice
award or the Best Mobile
Network and the Best
Qality Mobile Network
Service Provider award at
the 6th National Telecom
Awards 2012 hosted byCMAI in May, 2012
Won ve awards at tele.net
Telecom Operator Awards
2013, held in March, 2013,
inclding the Most Admired
Bharti Airtel won one SilverEe award or its Baatsir paison ki nahin haicampaign or airtel money
in the telecom category
-
7/30/2019 Pic of Bharti Airtel
15/245
Corporate Social Responsibility
Bharti Airtel partners organisations across countries o itsoperation to oster inclusive growth. The Company is actively
pursuing its socio-economic priorities across multiple
platorms. Its individual business units, spread across
dierent geographies, have consistently tried to promote
social inclusion in an environmentally sustainable manner.
India AricaBhartiFoundation
Programme Expansion
Our School
MobileSustainability
Making theWorld Greener
Community
Development
BusinessSustainability
Making theWorld Greener
Community
Development
-
7/30/2019 Pic of Bharti Airtel
16/245
A World o Friendships
Satya Bharti Schools in India
stdents enrolled in Satya
Bharti Schools
percentage o girls among
total stdents
percentage o stdents rom
disadvantaged commnities
investments made in
Satya Bharti Schoolssince inception
yong people employed
as teachers at Satya
Bharti Schools
254
49%
75%
`1,442.94 Mn*
1,477
39,535
Flashback 2012-13
Initiated a new programme to provide bridgecorses to ot o school children to indct them
into mainstream government schools (Satya Bharti
Learning Centres)
Lanched a holistic pilot programme to improve the
qality o edcation imparted in government schools
(Qality Spport Programme)
Objectives o Satya Bharti School Programme
Provide ree and qality edcation to rral,
nderprivileged children, with special ocs on girls
Help stdents emerge as edcated, condent,
responsible and sel-reliant employable citizens, who
are deeply committed to society
Encorage active involvement with the commnity,
parents and like-minded organisations
Make a lasting and sstainable impact on the
commnity, where schools are present
Find innovative soltions throgh its primary,
elementary and senior secondary schools to create
replicable and scalable components in the programme
to impart qality edcation
IndiaBharti Fondation: Towards delivering qality edcation
Bharti Fondation was established in 2000 with a vision to help nderprivileged children and
yong people o the contry realise their potential. Its agship initiative, the Satya Bharti School
Programme, was lanched in 2006.
* In addition,`
743.91 Mn has been spent on Capital Expenditre till March 2013.
The above data are as o April 30, 2013 except the investments made in SatyaBharti Schools since inception.
-
7/30/2019 Pic of Bharti Airtel
17/245
Sustainable ProgrammeModel
QualityEducation
Engagementwith School
TeacherMotivation &Commitment
Learning Levels &Holistic Development
(Responsible andEmployable)
Community
Engagement & Parent
Involvement
Teacher Selection,
Training &
Accountability
Joyul Learning
& Child-riendly
Inrastructure
Activity-based Learning
including Community
Campaigns
Teaching Learning Material
& Teachers Guides
Assessments &
Growth
Agents o Change
The Stdents at Satya Bharti recognise their role in
bringing abot social transormation to emerge as
responsible citizens
Fighting or a Cause
In a survey conducted by the Satya Bharti School
students in the village, it was ound that only
80% o the children population o Kurrian Kalan
attended schools while the remaining 20% were
-
7/30/2019 Pic of Bharti Airtel
18/245
A World o Friendships
Winds o Change by a 12 Year Old
Arti Verma, a Class V student o Satya Bharti
Government Upper Primary School, Raiwana,
Rajasthan, was instrumental in getting her riendsocial recognition. Seeing that her riend was
denied entry into the village temple, Arti raised
her voice against untouchability and ought or an
impartial society. She gained her athers support
in her crusade. Post approval rom her parents,
she met the villagers and sensitised them towards
the issue through meetings, rallies, hand-made
posters and slogans. Gradually her eforts started
showing results. The villagers started accepting
the once considered untouchables into the
community. Many children rom the lower castes
were allowed to enter the schools. A ew men and
women ound employment and started to take part
in socio-economic activities. The 12 year old was
instrumental in bringing a change in the mindset othe villagers towards untouchability. Her endeavour
to create an equitable society was appreciated by
the jury o Pramerica Spirit o Community Awards.
Programme Expansion
Educate A Child
Edcate A Child is a global initiative lanched by Her
Highness Sheikha Moza bint Nasser o Qatar, which
aims to redce the nmber o ot o school children
worldwide to ensring their Right to Edcation
Bharti Fondation is Edcate A Childs strategic
partner in India. The Fondation is setting p Satya
Bharti Learning Centres in the villages o Rajasthanalong with the State Government to enrol ot o school
children
under the Satya Bharti School Programme, the
Fondation partnered the state government to
establish 45 Satya Bharti Learning Centres in
Government schools in Jodhpr, Rajasthan. These
centres have 1,134 ot o school stdents ndertaking
bridge edcational corses to get ready or age-appropriate classes
The Quality Support Programme
The Qality Spport Programme aims to collaborate
with the Government and work towards improving
the qality o edcation throgh need-based
interventions. The intervention model developed or
the government schools ocses pon the optimal
tilisation o government resorces and pooling bestpractices to address their hierarchy o needs
-
7/30/2019 Pic of Bharti Airtel
19/245
The Qality Spport Model ofers the participatingschools a range o spport material/services ranging
rom entailing crriclm material, teacher training,
school processes, pedagogical tools and mentoring
sessions
A Memorandm o understanding (Mou) has been
signed with Pnjab and Haryana Government or this
intervention
Bharti Foundation: A Resource Organisation inEducation Space
Bharti Fondation plays a key role as a resorce
organisation to many national and international
instittions, sch as:
Ministry o Hman Resorce Development (MHRD)
Conederation o Indian Indstry (CII)
Federation o Indian Chambers o Commerce andIndstry (FICCI)
World Bank and Indian Institte o CorporateAfairs (IICA)
Spplemental Type Inspection Report (STiR)
Bharti Fondations international presence:
Inopoverty World Conerence organised in the uN
headqarters, New York
Learning or All Ministerial Contry Meetings in
Washington
Awards and Accolades
2012 World Innovation Smmit or Edcation (WISE)
Award
ICICI Fondation & CNBC TV-18 Inclsive India
Award 2012
Qality Concil o India - D.L. Shah Qality Awards
2012-13
-
7/30/2019 Pic of Bharti Airtel
20/245
A World o Friendships
Airtel Delhi Hal Marathon: Raising Funds
The Airtel Delhi Hal Marathon created an excellent
platorm to bring together corporates, individals,
employees and stdents o schools and colleges. It
created a perect space or Bhar ti Fondation to drive
every resh batch o MBAs joining the Company rom
premim instittes participates in this two-week
programme. In 2012-13, as many as 98 Yong Leaders
volnteered in 49 Satya Bharti Schools in Rajasthan
-
7/30/2019 Pic of Bharti Airtel
21/245
shermen beneited
by Bharti Airtels
cstomised inormation100,000+
Bsiness SstainabilityBharti Airtel extended its sstainability
network throgh the ollowing initiatives:
Farmers and FishermenIFFCO Kisan Sanchar Limited (IKSL), the joint ventre
with the Indian Farmers Fertiliser Cooperative Limited
(IFFCO), nctioned along with Agricltral Technology
Management Agency (ATMA) in diferent states to provide
technical inormation related to edcation, government
schemes, health, loans rom banks and so on.
In Odisha, IKSL teamed p with The National Federation o
Fishermens Cooperatives Ltd. (FISHCOPFED) and the state
government to provide cstomised content to shermen.
The services inclded inormation on Potential Fishing
Zone (PFZ), advance weather orecasting, tidal wavelength,
shing reglatories, basic hygiene on shing, health,
shing tips and government schemes.
Apna Chaupal
Airtel uttar Pradesh & uttaranchals (uPu) Apna Chapal
is a rst-o-its-kind, voice-based, one-stop soltion
portal or vale-added services. The service was ormally
lanched in Khindora o Bagpat district, uttar Pradesh,especially or the rral and semi-rban markets.
The innovative service empowers pan-India mobile
cstomers to easily browse and sbscribe to a boqet o
vale-added services, while on the move, by jst dialling a
toll-ree nmber.
-
7/30/2019 Pic of Bharti Airtel
22/245
A World o Friendships
Making the World Greener
Cyber SecurityThe Company reglarly spports government agencies
like CERT.in, IB, NTRO and NATGRID to provide services,
inclding threat mitigation like botnet threat, stxnet
propagation and others; proactively mitigate threats to
national critical services (attack simlation exercises).
The Company also works closely with DSCI to evolve the
privacy ramework.
CerticationsISO 22301
Bharti Airtel invested sbstantially in bsiness
continity and disaster recovery plans across all its
geographies
It became the rst telco to be certied against
ISO 22301 or India, Srilanka and Bangladesh
operations
Airtel M Commerce Services was also certiedagainst ISO 22301 and was achieved withot a single
non-conormity. This was one o the most complex
implementations and certication eforts in bsiness
continity globally
ISO 27001
Bharti Airtels robst inormation secrity management
system and operations were certied against ISO 27001
Airtel M Commerce Services was also certied against
ISO 27001
The Company also pioneered the innovation and
implementation o integrated approach or ISO 22301
and ISO 27001; it holds the distinction o being the rst
Company globally to have implemented an integrated
ISMS-BCMS across Sri Lanka, Bangladesh and 16
bsiness nits o India
-
7/30/2019 Pic of Bharti Airtel
23/245
Green sites, on which the
Companys network operates
Trees saved annally by
commnicating throgh e-bills
Cstomers nder e-billing
10,30021,400
50 Mn
Green Energy
A 100 kwp solar power plant was commissioned at one
o the Main Switching Centres (MSCs) o the Company
in India. This is the largest rootop installation inIndias entire telecom sector, generating 1.5 Lakh
nits o green energy annally; moreover, planning to
replicate this in its other MSC locations with 300 kwp
solar power plants
Implemented solar soltions at mobile base stations
and transport network site and battery hybrid soltion
at BTS sites
Completed sccesslly the trial o biomass gasier toreplace DG rnning at BTS sites at Airtel network
Green Networks
Conversion o Indoor Sites into Outdoor Ones
This year, Bharti Airtel converted abot 1,680 base
t ti i d t td it li i ti th
sites. With help rom its vendor-partners, the
Company has developed and implemented Ato TRX
sht down. This eatre is now active at abot 61,000
pan-network sites Network Deployment as Sharer
In 2012-13, as mch as 68% o the incremental
sites were deployed on a sharing basis. These sites
share the existing power inrastrctre with tower
companies to redce carbon ootprint
Partnering or a Greener World
Project P7 with Bharti InratelContining its eforts with Inratel to shape a greener
world, Bharti Airtel eliminated diesel generators (DGs)
rnning across 3,200 sites in 2012-13, converting them
into green sites
-
7/30/2019 Pic of Bharti Airtel
24/245
A World o Friendships
Commnity DevelopmentBharti Airtel encorages its employees to
engage meaninglly with the commnity
throgh mltiple services.
Plantation DriveAirtel Centre, Grgaon, collaborated with an NGO,
IamGurgaon, nder the project Million Trees Grgaon to
plant 2,000 saplings in the bio-diversity park, Grgaon.
Arond 200 employees, along with the CEO, participated
in this drive. NESA and uPu circles planted arond 500
saplings, while Airtel Rajasthan, along with a local NGO,
Paaniram, planted 2,500 plants.
e- Annual ReportBharti Airtel has started distribting annal reports
throgh email, ths helping redce paper consmption.
The Company has sent the electronic version o the Annal
Report to more than 2 Lakhs shareholders, saving over
2 Cr. pages.
e-BillsThe Company was sccessl in its endeavor to lanch
e-bills or its post-paid and xed-line cstomers. Today,
over 50 Mn o its cstomers se e-bills. This go-green
drive enabled the Company to save 21,400 trees annally.
Moreover, the process o address verication o post-
paid acqisitions also went digital. eWaivers, introdced
nationally or getting waivers approved, is another key
initiative aimed at shering in paperless processes.
-
7/30/2019 Pic of Bharti Airtel
25/245
Disaster RelieBharti Airtel contined to extend its spport to the society
in times o natral calamities and other disasters. The
NESA circle spported the victims o commnal clashes in
Lower Assam whose hoses were destroyed in Agst 2012.
200 volnteers participated and provided ood packets and
clothes to the victims. Additionally, the Company donated
signicant sms o money, which were sed to by essential
ood items or the victims. Delhi NCR Circle, in associationwith the NGO Goonj, ndertook a drive to collect a hge
qantity o old wearable clothing or the nderprivileged.
Moreover, employees o Rajasthan Circle and Airtel Centre
collected and contribted old wearable clothing to Mother
Teresa Home and the NGO, CRY.
Blood Donation CampBharti Airtel has been holding Blood Donation Camps
or several years across varios circles in India to save
hman lives. This year also, Airtel Centre Grgaon, Airtel
Bsiness, NESA Circle, Karnataka Circle, uPu Circle and
Shared Services organised Blood Donation Camps. A large
nmber o employees participated to make these initiatives
sccessl.
SMS CampaignsThe Company lanched varios SMS campaigns across
diferent markets to enhance social welare and drive
awareness. These inclded alerts on polio prevention
dosage, trac rles, reminder on right to vote, radlent
calls, corrption/bribes and drg tracking.
-
7/30/2019 Pic of Bharti Airtel
26/245
A World o Friendships
AfricaOr School
Airtel Aricas Or School programme is aschool-adoption initiative, nder which the
Company adopted 38 rral primary schoolsacross 17 Arican contries. Working closelywith governments in these contries, it aimsto improve the qality o edcation impartedto children in nderprivileged commnities.
-
7/30/2019 Pic of Bharti Airtel
27/245
In Tanzania, nder its continos nationwide bookcampaign, the Company collaborated with the governmentthrogh the Ministry o Edcation and Vocational Training.The objective was to improve the contrys edcationalacilities to help develop a well-eqipped tre workorce.It donated or compters and books or MazombeSecondary School in Iringa nder the programme. AirtelArica aims to se this platorm to reach ot to moreschools throghot Tanzania.
Mobile SstainabilityArica, more than any other region in the
world, needs the most concentrated eforts
at social inclsion.
Airtel Arica is sensitive to this need and believes in thepower o technology to drive the change. One o themajor steps to bring abot a change was to bridge the
gap between the privileged and the nderprivileged. TheCompany perormed this task by bringing its prodcts andservices into the daily lives o people.
Partnership with Nokia
Airtel Arica, in collaboration with Nokia, developed anICT-based initiative, Nokia Edcation Delivery (NED), toprovide broadband connectivity to rral schools. underthis programme, Nokia ses mobile technology to oferedcational videos, both classroom lessons and trainingsessions. These videos are meant or teachers across100 schools in remote Nigeria and 13 schools in almostinaccessible areas in other Arican contries.
Partnership with Earth Institute
Airtel Arica has also partnered with the EarthInstitte, a non-prot organisation in Arica, to providetelecommnication services to eight villages in sixcontries (one each in Ghana, Malawi, Tanzania and
uganda and two each in Kenya and Nigeria). People whobelong to these rral pockets, also known as MillennimVillages, are provided with internet connections. Besides,this initiative also provides celllar phone connectionsand ree-o-cost local helpline nmbers maintained by theCompany or commnity health workers.
research and academic instittions and others working aspart o the Millennim Villages project.
Partnership with Sanlam
Airtel Arica entered into a strategic agreement withSanlam, a Soth Arica-based nancial services grop.The objective was to develop low-cost insrance andhealth nding prodcts across Kenya, Ghana, Tanzania,Zambia, uganda, Malawi and Nigeria.
Making the World GreenerTo redce its carbon ootprint, Airtel Arica
started converting high OPEX sites to theirOPEX-ecient conterparts throgh a three-
way approach:
1. Increasing grid connection percentage, i.e. convertingof-grid sites into grid sites
2. Deploying hybrid batteries on bad grid and of-grid sites
3. Deploying green energy soltion (solar) on of-grid sites
Till date, over 105 solar sites have been set p in Nigeria,redcing diesel generator sage rom 24 hors a day tojst three to or hors daily. By 2013, Airtel Arica aimsto completely eradicate the constant se o diesel and
make its network entirely green power driven. In the lasttwo years, Airtel redced the diesel consmption by 25%across all sites.
Commnity DevelopmentAirtel Rising Stars
A W ld F i d hi
-
7/30/2019 Pic of Bharti Airtel
28/245
A World o Friendships
Business Responsibility Report
Section A: General Inormation about the Company
1. Corporate Identity Number (CIN) L74899DL1995PLC070609
2. Name o the Company Bharti Airtel Limited
3. Registered Address Bharti Crescent, 1, Nelson Mandela Road, Vasant Kunj, Phase II,
New Delhi - 110 070
4. Website www.airtel.com
5. Email id [email protected]. Financial Year reported 2012 2013
7. Sector(s) that the Company is engaged in
(industrial activity code-wise)
Telecommunication services, Passive Inrastructure services, Direct to
home services, Mobile Commerce Services either directly or through
its subsidiary companies
Industrial Group Description
61 Telecommunication Services
Passive Inrastructure Services (Through Subsidiary Company)Direct to Home Services (Through Subsidiary Company)
Mobile Commerce Services (Through Subsidiary Company)
As per National Industrial Classication Ministry o Statistics and Programme Implementation
8. List three key products/services that theCompany manuactures/provides (as in
Mobile Services, Broadband Services and Telephone Services
-
7/30/2019 Pic of Bharti Airtel
29/245
Section B: Financial Details o the Company
1. Paid up capital (`) 18,988 Mn
2. Total turnover (`) 453,509 Mn
3. Total prot ater taxes (`) 50,963 Mn
4. Total spending on Corporate Social Responsibility
(CSR) as percentage o prot ater tax (%)
During FY 2012-13, the Companys total spent on CSR is 0.58%
o the net prot ater taxes
5. List o activities in which expenditure in 4 above
has been incurred
1) Promotion o education through Bharti Foundation schools
and other education trusts
2) Health services and awareness3) Higher and technical education
4) Child welare programmes
5) Disaster relie initiatives
6) Community development programmes
7) Environment initiatives and awareness
Section C: Other Details
1. Does the Company have any Subsidiary Company/Companies?
Yes. As on March 31, 2013, Bharti Airtel Limited had 119 direct and indirect subsidiary companies.
2. Do the Subsidiary Company/Companies participate in the BR Initiatives o the parent Company? I yes, then indicate the
number o such subsidiary company(s).
All subsidiary companies o Bharti Airtel Limited participate in its Business Responsibility Initiatives.
3. Do any other entity/entities (e.g. suppliers, distributors etc.) that the Company does business with, participate in the BRinitiatives o the Company? I yes, then indicate the percentage o such entity/entities? [Less than 30%, 30-60%, Morethan 60%]
Yes, Bharti Airtel Limited actively promote its suppliers and distributors to participate in its BR initiatives on a wide
range o social and environmental issues. Currently, less than 30% o other entities participate in the BR initiatives o
the Company.
Section D: BR Inormation
1. Details o Director/Directors responsible or BR:
a) Details o the Director/Directors responsible or implementation o the BR policy/policies:
DIN Number : 00028016
Name : Rajan Bharti Mittal
A World o Friendships
-
7/30/2019 Pic of Bharti Airtel
30/245
A World o Friendships
A substantial portion o the beneciaries o Bharti Foundation andits programmes are centred around the economically weak anddisadvantaged groups, specially SC/ST/OBC categories and girlstudents.
2. Principle-wise (as per NVGs) BR Policy/Policies (Reply in Y/N):
The National Voluntary Guidelines on Social, Environmental and Economic Responsibilities o Business (NVGs) released
by the Ministry o Corporate Aairs has adopted nine areas o Business Responsibility.
Principle 1
Businesses should conduct
and govern themselves with
Ethics, Transparency and
Accountability
Principle 2
Businesses should provide
goods and services that
are sae and contribute to
sustainability throughout
their lie cycle
Principle 3
Businesses should promote
the well-being o all
employees
Principle 4
Businesses should respect the
interests o, and be responsive
towards all stakeholders,
especially those who are
disadvantaged, vulnerable and
marginalised
Principle 5
Businesses should respect
and promote human rights
Principle 6
Businesses should respect,
protect, and make eorts to
restore the environment
-
7/30/2019 Pic of Bharti Airtel
31/245
Sl.
No.Questions P1 P2 P3 P4 P5 P6 P7 P8 P9
1. Do you have a policy/policies or... Y N* Y Y Y Y N* Y Y
2. Has the policy been ormulated in consultation with
the relevant stakeholders?
Y - Y Y Y Y - Y Y
3. Does the policy conorm to any national/
international standards? I Yes, speciy?
(50 words)
Y - Y Y Y Y - Y Y
4. Has the policy being approved by the Board? I yes,
has it been signed by MD/Owner/CEO/appropriate
Board Director?
Y - Y Y Y Y - Y Y
5. Does the Company have a specied committee
o the Board/Director/Ocial to oversee the
implementation o the policy?Y - Y Y Y Y - Y Y
6. Indicate the link or the policy to be viewed online? Y - N N N N - N N
7. Has the policy been ormally communicated
to all relevant internal and external stakeholders?
Y - Y Y Y Y - Y Y
8. Does the Company have in-house structure to
implement the policy/policies?
Y - Y Y Y Y - Y Y
9. Does the Company have a grievance redressal
mechanism related to the policy/policies to address
stakeholders grievances related to the policy/
policies?
Y - Y Y Y - - - Y
A World o Friendships
-
7/30/2019 Pic of Bharti Airtel
32/245
A World o Friendships
3. Governance related to BR
Indicate the requency with which the Board oDirectors, Committee o the Board or CEO assess
the BR perormance o the Company. Within 3
months, 3-6 months, annually, more than 1 year.
The Board reviews CSR perormance twice a year.
Does the Company publish a BR or a Sustainability
Report? What is the hyperlink or viewing this
report? How requently it is published?Yes, the Company publishes separate Annual
Sustainability Report. The electronic version o the
report is uploaded on the Companys website and
can be viewed by clicking the link www.airtel.in/
sustainability.
Section E: Principle-wise Perormance
Principle 01Businesses should conduct and govern themselves with
Ethics, Transparency and Accountability
1. Does the policy relating to ethics, bribery and corruption
cover only the Company? Yes/No. Does it extend to
the Group/Joint Ventures/Suppliers/Contractors/NGOs
Others?
Bharti Airtels commitment towards compliance tothe highest governance standard is backed by an
independent and ully inormed Board, comprehensive
processes, policies and communication. The Company
adheres to the highest levels o ethical business
practices as articulated by its Code o Conduct to achieve
our perormance with integrity. Policy relating to ethics,
bribery and corruption is covered under Bharti Code o
Conduct (Pg. 15, 16, 39) reerring to bribes, kickbacksand improper payments and Clause 5.2 o the Code o
Conduct or Business Associates. The Policy extends to
the entire Bharti Group and covers employees, suppliers
& contractors, service providers, channel partners and
their employees. In addition to this, the Companys
Principle 02
Businesses should provide goods and services that are sae
and contribute to sustainability throughout their lie cycle
1. List up to three o your products or services whose
designs have incorporated social or environmental
concerns, risks and/or opportunities.
Bharti Airtel is leveraging its existing services o
Mobile DTH and Broadband to provide basic lie services
o nancial inclusion, health and education throughmobile money, mobile health, mobile education and
agricultural awareness.
2. For each such product, provide the ollowing details in
respect o resource use (energy, water, raw material
and so on) per unit o product (optional):
i. Reduction during sourcing/production/distribution
achieved since the previous year throughout the
value chain.
These services have a social impact and as they
leverage on the existing platorms provided by
the Company, they have no impact on sourcing/
production or distribution.
ii. Reduction during usage by consumers (energy,
water) has been achieved since the previous year?
No broad-based impact on energy and water due to
these services.
3. Does the Company have procedures in place or
sustainable sourcing (including transportation)? I
yes, what percentage o your inputs was sourced
sustainably? Besides, provide details thereo in about
50 words or so.
Yes. The Company has implemented various sustainable
supply chain practices and initiatives and at the same
time ensure timely and cost-eective deliveries or
necessary resources. Details o the same can be ound
in point No. 4 below.
-
7/30/2019 Pic of Bharti Airtel
33/245
also started to consolidate our supply-chain base to
make our engagement more ocused and meaningul.
Besides, the Company is developing a ramework to
promote underprivileged groups in society with a
special ocus on promoting women entrepreneurs and
small businesses.
5. Does the Company have a mechanism to recycle
products and waste? I yes, what is the percentage o
recycling them (separately as 10%)?
Besides, provide details thereo in about 50 words or so.
Being an ICT sector player, the most signicant
waste generated by the Company is E-waste. Various
strategies have been put in place to achieve reduction
o e-waste through employee awareness, extended
use o network and IT equipment. It is ensured that
the e-waste is recycled and the residual is disposed o
through recycling acilities as per the guidelines o the
Government o India.
Principle 03
Businesses should promote employee well-being
1. Please indicate the total number o employees.
As o March 31, 2013, the strength o Bharti Airtels
workorce stood at a total o 15, 563 employees.
2. Please indicate the total number o employees hired on
temporary/contractual/casual basis.
Category o employees No o employees
Temporary employees Nil
Sub-contracted employees(For the calendar year 2012,As per Form 12) 17,794
Casual employees Nil
Total 17,794
3. Please indicate the number o permanent women
employees.
6. What percentage o your permanent employees is
member o this recognised employee association?
N/A
7. Please indicate the number o complaints relating to
child labour, orced labour, involuntary labour, sexual
harassment in the last nancial year and pending as on
the end o the nancial year.
Nil
8. How many o your under-mentioned employees weregiven saety and skill up-gradation training in the last
year?
Category Saety
(No. o
employees)
Skill
Upgradation
(No. o
employees)
Permanent employees 12,581 11,835Permanent womenemployees 868 1,088
Casual/Temporary/Contractual employees 6,873 *
Employees withdisabilities 36 25
*Tracking initiated.
Principle 04
Businesses should respect the interests o, and be responsive
towards all stakeholders, especially those who are
disadvantaged, vulnerable and marginalised.
1. Has the Company mapped its internal and external
stakeholders? Yes/No
Yes, the Company has mapped its stakeholders as a parto its stakeholder engagement process. Key categories
include: Customers, suppliers/vendors, employees,
community at large, investors, governmental bodies,
industry orum.
A World o Friendships
-
7/30/2019 Pic of Bharti Airtel
34/245
Bharti Airtel continuously strives to bring maximum
people under digi-presence, which it denes as creating
a platorm or digital accessibility o telecommunication,
internet and digital television services. It is determined
to take the benets o digi-presence beyond urban or
afuent areas to remote areas. Bharti Airtels innovative
and emerging business models like airtel money,
mEducation and mHealth are ocused on overcoming
the obstacles to social development and inclusion.
3. Are there any special initiatives undertaken by the
Company to engage with the disadvantaged, vulnerable
and marginalised stakeholders? I so, provide details
thereo, in about 50 words or so.
Community outreach orms an integral constituent
o the Satya Bharti School Programme. Aiming
to build the trust and ownership o parents and
community members, the ormat ensures that
there is enough opportunity or the community to
understand and be engaged with the schools
Young Leaders rom Bharti Airtel volunteer on
locations at the Satya Bharti Schools as a part o
their corporate induction schedule. It is a two-week
programme where the volunteers are expected to
assist Satya Bharti School teachers, assist them
to organise upcoming events, strengthen theirEnglish and basic computer knowledge and help
raise the prole o the village school
Bharti Airtel employees are encouraged to
volunteer at Satya Bharti Schools and share their
time, skills and knowledge with the children
Principle 05
Businesses should respect and promote human rights
1. Does the policy o the Company on human rights
cover only the Company or extend to the Group/Joint
Ventures/Suppliers/Contractors/NGOs/Others?
Bharti Airtel does not have a stated specic Human
Principle 06
Businesses should respect, protect, and make eorts to
restore the environment
1. Do the policies related to Principle 6 cover only the
Company or extends to the Group/Joint Ventures/
Suppliers/Contractors/NGOs/Others?
The environment health and saety policy extends to
Bharti Airtel and its subsidiaries.
2. Does the Company have strategies/initiatives toaddress global environmental issues, such as climate
change, global warming, and others? I yes, please give
hyperlink or webpage and so on.
Yes, ew strategies to address the sustainability issues
like climate change and energy are given as below:
1) Alternate Energy Sources
A) Solar PV power base stations and Solar DG HybridSolution
B) Fuel Cells
C) Wind powered electricity generators or base
stations
D) Use o bio-diesel in place o petro diesel
E) Biomass based solution
2) Energy Eciency measuresA) Fuel Catalyst
B) Variable Speed DC DG
C) Use o FCU unit & temperature management
D) Deployment o Low-power Consuming Base
Transceiver Station (BTS) (have been able to
achieve a reduction in power consumption by a
minimum o 30% over the last 4-5 years)
E) Use energy-ecient retrot in base stations such
as Integrated power management systems, ecient
DC to AC converters, etc
F) Improvement o Power Utilisation Eectiveness
(PUE) in our Data Centres
-
7/30/2019 Pic of Bharti Airtel
35/245
3) Demand side Management
A) DC Free Cooling Unit (DCFCU)
B) Installation o GenX
4) Design modifcations and innovations
A) Green Shelters: Shelters with optimal cooling,
power and thermal management systems,
minimising the running o DG sets, reducing energy
consumption by 40%
B) Reducing use o indoor BTS, which reduces the air-
conditioning load and resulting power consumption
by 35-40%
C) Upgrading the existing sites with auto-TRX
shutdown eature, which during the non-peak
hours at ew sites can switch the TRX to reduce the
power requirement
These strategies are detailed on the ollowing link:
http://www.airtel.in/sustainability-le/our-planet.html
3. Does the Company identiy and assess potential
environmental risks? Y/N
Yes, the Company has identied climate change and waste
management as material issues rom a sustainability
perspective and has aligned its sustainability strategy
around the same.
4. Does the Company have any project related to Clean
Development Mechanism? I so, provide details thereo
in about 50 words or so. Besides, i yes, mention whether
any environmental compliance report is led?
No. Currently, the Company is not undertaking any
project related to CDM.
5. Has the Company undertaken any other initiatives on
clean technology, energy eciency, renewable energy
and so on? I yes, please give hyperlink to web page and
others.
6. Are the emissions/waste generated by the Company
within the permissible limits given by CPCB/SPCB or
the nancial year under review?
Yes, the emissions/waste generated by the Company are
within the permissible limits given by CPCB/SPCB.
7. Number o show cause/legal notices received rom
CPCB/SPCB, which are pending (i.e. not resolved to
satisaction) as at the end o the nancial year.
There have been two show cause/legal notices receivedrom CPCB/SPCB by the Company in FY 2012-13, which
are under various stages o closure.
Principle 07
Businesses, when engaged in inuencing public and
regulatory policy, should do so in a responsible manner
1. Is your Company a member o any trade and chambers
or association? I yes, name only those major ones thatyour business deals with.
The Company is member o various business associations
including the ollowings:
Conederation o Indian Industry (CII)
Federation o Indian Chambers o Commerce and
Industry (FICCI)
Cellular Operators Association o India (COAI)Association o Unied Telecom Service Providers o
India (ASUPI)
The Associated Chambers o Commerce and
Industry o India (ASSOCHAM)
VSAT Services Association o India (VSAI)
DTH Association o India
The Internet Service Providers Association o India
(ISPAI)
2. Have you advocated/lobbied through the above
associations or the advancement or improvement o
public good?
A World o Friendships
-
7/30/2019 Pic of Bharti Airtel
36/245
the ability o individuals and companies to innovate,
benet the daily lives o people and strengthen the
countrys economy. Bharti Airtel works to ensure that
its public policy positions complement or advance its
sustainability and citizenship objectives. In taking public
policy positions, Bharti Airtel strives to advance in
innovation, enhance competitiveness, and increase job
creation, economic growth and sustainable standards
o living. Our policy agenda is centred around the
provision o network coverage, aordable access to the
customers, digital inclusion, quality o service oerings,
tari, environment and so on.
Principle 08
Businesses should support inclusive growth and equitable
development
1. Does the Company have specied programmes/
initiatives/projects in pursuit o the policy related toPrinciple 8? I yes, provide details thereo.
Bharti Airtels blueprint o social inclusion aims
at ensuring that millions more are included and
empowered through sustainable economic growth. This
objective is guided by its three Social Pillars, namely:
1) Increasing digital ootprint and bringing everyone
into digi-presence
2) Applying Bharti Airtels existing platorms to the
universe o health, education and nancial services
to the weaker sections o the society
3) Fostering community development through active
community service and engagement through
Bharti Airtels reach and accessibility in urban and
rural India
These objectives are accomplished by:
Bridging the digital divide through its robust
network and ar-reaching distribution
Working towards expanding bouquet o services
and enhancing its communication technologies
Recruiting local youth as teachers and training
them continuously to upgrade their skills. Most
o these teachers also belong to marginalised
sections
Employing mothers o children as Mid-Day Meal
(MDM) vendors. Most o these women MDM
vendors have opened an account or the rst time
in their lives
2. Are the programmes/projects undertaken through in-
house team/own oundation/external NGO/government
structures/any other organisation?
Bharti Foundation is the philanthropic arm o the Bharti
Group. Bharti Airtels philanthropic initiatives are
mainly implemented through Bharti Foundation.
3. Have you done any impact assessment o your initiative?
Yes. Impact assessment is done by both internally andthrough the third party.
Internal assessments
Monthly School Report measuring perormance o
schools with an easy-to-ll excel-based school-
level database
School Report Card giving overall grade to a
school, based on its perormance on variousinputs, processes and output parameters
Process Audits conducted by the quality team at
individual schools to identiy process gaps, on the
basis o School Operating Manual
External assessments
Students learning levels have been validated by
external evaluations. The rst external evaluationwas undertaken by Indus Learning Solutions and
supported by the World Bank in FY 2010-11 and by
Educational Initiatives in FY 2011-12. The external
assessors provided valuable insights on students
perormance, improvements needed in training as
-
7/30/2019 Pic of Bharti Airtel
37/245
5. Have you taken steps to ensure that this community
development initiative is successully adopted by the
community? Please explain in around 50 words.
Community involvement, participation and their
sustained support towards the Satya Bharti Schools
have been a key component o the programme over the
last six years. Bharti Foundation ensures adoption o its
various initiatives through the ollowing ways:
Schools connect with the community
Regular home visits by teachers
Structured parent-teacher meetings
Community development campaigns
Community connecting schools with local culture
Community Volunteering Week
Community members teach local history,
traditions, art and crat to Satya Bharti
Schools students
Community participation in school events
Principle 09
Businesses should engage with and provide value to their
customers and consumers in a responsible manner
1. What percentage o customer complaints/consumer
cases is pending, as at the end o the nancial year?
Only 0.059% o the customer complaints received in
FY 2012-13 is pending and is being carried orward in
FY 2014 or resolution, as on March 31, 2013. Around 64%
o the 312 legal/consumer cases received in FY2012-13
are at various stages o resolution, as on March 31, 2013.
2. Does the Company display product inormation on
the product label, over and above what is mandated
as per local laws? Yes/No/N.A./Remarks (additionalinormation).
Since the Company is engaged in the business o
providing suite o telecommunication services, the
clause has limited applicability. Notwithstanding
Bharti Airtel has been transparently communicating
service mandatory inormation regarding enrolment
and deactivation, tari, usage, contact and grievance
inormation, in addition to others on its periodical bills,enrolment orm, booklets, website and POS displays to
the extent possible.
3. Is there any case led by any stakeholder against the
Company regarding unair trade practices, irresponsible
advertising and/or anti-competitive behaviour during
the last ve years and pending as at the end o the
nancial year? I so, provide details thereo, in about 50
words or so.Nil
4. Did your Company carry out any consumer survey/
consumer satisaction trends?
Yes, the Company conducts customer satisaction
trends, both or individual and enterprise customers
at every stage o the interaction through IVR-based
Customer Feedback in our Contact Centres. Along withthis, Customer Transaction Assessment and Customer
Relationship Assessment are conducted by a third party
to evaluate customer perception and discover areas
critical to maintaining customer loyalty.
The customer satisaction score or FY 2012-13 stood at
86.75% and 81.75% or prepaid and postpaid services,
respectively.
A World o Friendships
-
7/30/2019 Pic of Bharti Airtel
38/245
Directors Report
Dear Shareholders,
Your Directors have pleasure in presenting the 18th Annual
Report on the Companys business and operations,
together with the audited nancial statements or the year
ended March 31, 2013.
Company OverviewBharti Airtel continued to be among the top our mobile
service providers globally with presence in 20 countries,
including India, Sri Lanka, Bangladesh and 17 countries in
the Arican continent. The Companys diversied service
range includes mobile, voice and data solutions using 2G, 3G
and 4G technologies. Its service portolio also comprises an
integrated suite o telecom solutions to its customers, besides
providing long-distance connectivity in India, Arica and resto the world. The Company also oers Digital TV and IPTV
services in India.
All these services are rendered under a unied brand
airtel, either directly or through subsidiary companies.
The Company also deploys, owns and manages passive
inrastructure pertaining to telecom operations through its
subsidiary, Bharti Inratel Limited, which owns 42% o Indus
Towers Limited. Together, Bharti Inratel and Indus Towers
are the largest passive inrastructure service providers
in India.
Financial Results
In line with the statutory guidelines, the Company has
adopted International Financial Reporting Standards (IFRS)
or accounts consolidation rom FY 2010-11. Consolidated and
standalone nancial highlights o the Companys operations
are as ollows:
Consolidated Financial Highlights (IFRS)
-
7/30/2019 Pic of Bharti Airtel
39/245
The nancial results and the results o operations have urther
been discussed in detail in the Management Discussion and
Analysis section.
Share Capital
During the year, there was no change in the Companys issued,
subscribed and paid-up equity share capital. On March 31,
2013, it stood at ` 18,987,650,480, divided into 3,797,530,096
equity shares o` 5 each.
General Reserve
An amount o` 3,830 Mn has been transerred to the General
Reserve out o Bharti Airtels total standalone prot o
` 50,963 Mn or the nancial year ended March 31, 2013.
Dividend
The Board recommends a nal dividend o ` 1 per equity
share o` 5 each (20% o ace value) or the nancial year
2012-13. The total dividend payout will amount to ` 3,798 Mn
excluding tax on dividend. The payment o dividend is subjectto the approval o the shareholders in the Companys ensuing
Annual General Meeting.
Transer o Amount to Investor Education andProtection Fund
Fixed Deposits
The Company has not accepted any xed deposits and, as
such, no amount o principal or interest was outstanding, as
on the balance sheet closure date.
Capital Market Ratings
As on March 31, 2013, Bharti Airtel is rated by two
domestic rating agencies, namely CRISIL and ICRA, and two
international rating agencies, viz. Fitch Ratings and S&P.
CRISIL and ICRA revised their long-term ratings o the
Company. Currently, they rate the Company at [CRISIL]
AA+/[ICRA] AA+ with a stable outlook. Short-termratings were rearmed at the highest end o the rating
scale at [CRISIL] A1+/[ICRA] A1+
Fitch Ratings and S&P rearmed their respective
ratings at BBB- with negative outlook and BB+ with
stable outlook
Employee Stock Option Plan
The Company presently has two Employee Stock Option(ESOP) schemes, namely the (Employee Stock Option
Scheme 2001) and the Employee Stock Option Scheme 2005.
Besides attracting talent, the Schemes also helped to retain
talent and experience.
Standalone Financial Highlights (IGAAP)
Particulars FY 2012-13 FY 2011-12
` Millions USD Millions* ` Millions USD Millions*
Gross revenue 453,509 8,332 416,038 8,696
EBITDA 149,633 2,749 143,016 2,989
Cash prot rom operations ater derivatives
and orex uctuations 132,815 2,440 128,722 2,691
Earnings beore taxation 64,548 1,186 69,562 1,454
Net prot 50,963 936 57,300 1,198
* 1 USD = ` 54.43 Exchange Rate or nancial year ended March 31, 2013 (1 USD = ` 47.84 or nancial year ended March 31, 2012).
A World o Friendships
-
7/30/2019 Pic of Bharti Airtel
40/245
In view o the recent Circular issued by SEBI, the Company
stopped acquiring urther shares rom the open market
toward appropriation o the same or the ESOP scheme
2005. The shares acquired/held by the Trust prior to the
circular will be utilised to administer the above schemes in
accordance with the applicable regulations.
The ESOP Compensation Committee, constituted in
accordance with the Securities and Exchange Board o
India (Employee Stock Option Scheme and Employee
Stock Purchase Scheme) Guidelines, 1999 (the SEBI
Guidelines), administers and monitors the Companys ESOPschemes. The applicable disclosures as stipulated under
the SEBI Guidelines, as on March 31, 2013, are provided in
Annexure C to this report.
A certicate rom M/s. S. R. Batliboi & Associates LLP,
Chartered Accountants, Statutory Auditors, with respect to
the implementation o the Companys ESOP schemes, would
be placed beore the shareholders at the ensuing Annual
General Meeting. A copy o the same will also be availableor inspection at the Companys registered oce.
Branding
FY 2012-13 was marked by signicant achievements on
the brand ront. Strategic repositioning o brand airtel was
accelerated to make it younger, livelier and better connected.
The brand ollowed a coherent strategy or a younger and
resher brand anchored in the Friendship communication
territory.
In India, various advertisement campaigns, including Har
Friend Zaroori, Jo Mera Hai TV Commercial and others
enhanced the popularity o brand airtel urther. Airtel Rising
Stars gained more popularity in 2012, as it engaged the youth
across India, Sri Lanka and Bangladesh. Our association with
Manchester United was leveraged, allowing young people to
go or training at the Manchester Soccer School Academy,
UK. In 2012, Bharti Airtel helped ingrain the love or F1 sportin the minds o the Indian audience through the stars Michael
Schumacher and Nico Rosberg.
In Arica, Innovative trade branding toolkits were successully
rolled out in all countries. During the year, over 650,000
sq are metres o all branding ere completed and Pict re
sizes by more than 600% to over 7 Mn and created one o
Indias buzziest and most engaging social media brands.
Brand airtel was ranked as No. 1 among the service brands
in 2012 by Brand Equitys Most Trusted Brand Survey. It also
won several awards, including seven Abbies at GoaFest, our
Ees, three Bloomberg Brand Leadership awards, CNN-
IBNs Brand o the Year award, Yahoos 360 Campaign o the
Year award, agency aqs third Buzziest Indian Brand and so
on. Bharti Airtel captured the numero uno position among
telecom brands in Economic Times Brand Trust ratings. It
also entered the Financial Times Londons list o Top 100
Global Brands. The Nigeria Hal Dollar campaign was listed
as a nalist in the Facebook Studio Awards.
Major Agreements and Alliances
The Company signed the ollowing key agreements/alliances
in the year under review with:
Ericsson or Access Agnostic Packet Core catering to 2G,
3G and, in uture, 4G customers in all countries o Arica
HP to provide Cloud-enabled platorm (CLEP) to oer
Cloud-based services across all geographies in Arica
Ceragon, NSN and Ericsson or supply and installation
o Trunk Microwave to create high-capacity backbones
across all geographies in Arica
Huawei and Ericsson or IN system to implement latest
eatures, hardware modernisation and geographical
redundancy in India
Cisco and Alcatel Lucent (using Ruckus technology) to
deploy Wi-Fi hotspots in high ootall areas in top Indian
cities
Spirent, Agilent Technologies, Rohde & Schwarz, JDSU
and IXIA Wirtel to augment our state-o-the-art, in-
house validation laboratory capabilities or IndiaMicrosot to launch Oce 365 (O365) product or its
subscribers in India through airtel Cloud Enablement
Platorm
TURNER or two new advertisement-ree channels on
-
7/30/2019 Pic of Bharti Airtel
41/245
India
Superior customer experience has been at the heart o allinitiatives and products that were launched during the year.
The Companys presence across platorms 2G, 3G, 4G andDSL enables our customers to experience data acrossscreens. For improved data experience, we launched nearreal-time GPRS usage monitoring tool and, thereby reducedcustomer complaints.
To improve platinum and solitaire customer satisaction, the
Company initiated several ocused programmes like priority
access at call centres and oering attractive deals anddiscounts.
With our ocus on customer convenience, addingnon-traditional channels o contact became a ocus area.We have established our presence across popular social
networking sites and online orums.
During 2012-13, we undertook several key initiativesincluding the ollowing:
Launched 4G services in Pune, ollowed by Chandigarh,taking the total number o cities with 4G services to our(Bangalore, Kolkata, Pune and Chandigarh)
Developed Apps and Games Store with APPIA, whichis ranked third globally as an Apps and games Store,and helped consumers download data; a maximum o100,000 downloads were perormed in a day
Launched HD gaming, ofering high-denition gamesor smartphones like android and 3G devices
Launched airtel live Wap portal in Hindi to open up theworld o internet or even a larger number o consumers
Collaborated strategically with Opera Browser toenhance Mobile Internet browsing experience on 2Gnetworks
Integrated Billing API with Nokia Store to help customerspay rom their airtel wallet and download apps andgames rom Nokia Store
Launched mBazaar, a unique service, which uses aninnovative business model o lead generation to providea market place to customers and enables an unlimitedsearch and deals at the location nearest to them at avery nominal price
Partnered with Axis Bank to launch the Super Accountin May 2012 to help customers save and earn interest
on their airtel money account, as well as cash-outaccording to their requirement
Arica
Implemented Cloud Portal (without Billing) or Nigeria
Introduced 64K SIM Standardisation in 14 countries toensure higher capacity SIM card availability to increaseVAS content or the subscriber and to standardise SIMcard proles across the Arican countries
Implemented Doctor on Call in Malawi to give customersthe opportunity to consult doctors over mobile phone
Launched BB10 in Nigeria, making it the rst countryto introduce this BlackBerry device that oers newlook and eel and provides a dierent BlackBerryexperience; the operators inrastructure, as well asthe way the BlackBerry services will be packaged andcommercialised are also dierent
Other DevelopmentsDuring the year, Bharti Inratel Limited, the Companyssubsidiary, made an Initial Public Oering (IPO) through bookbuilding process. The subsidiary raised ` 32,303 Mn rom theresh issue o 146.2 Mn equity shares at an average price o` 220.90 per share o ace value ` 10 each. Bharti Inratelsshares were listed on December 28, 2012, on NSE and BSE.
Directors
During the year under review w.e.. September 06, 2012, LordEvan Mervyn Davies and H.E. Dr. Salim Ahmed Salim andw.e.. September 26, 2012, Mr. Akhil Gupta, Mr. Rakesh BhartiMittal and Mr. Hui Weng Cheong ceased to be the Directorsand Mr. N. Kumar retired rom the Board w.e.. February 01,2013. The Directors place on record their appreciation or thehelp, guidance and contribution made by them during theirtenure as Directors.
Ms. Obiageli Ezekwesili and Mr. Manish Kejriwal wereappointed as Additional Directors w.e.. September 26, 2012.They will cease to hold oce at the orthcoming AnnualGeneral Meeting and are eligible or re-appointment. TheCompany has received notices rom members under Section257 o the Companies Act, 1956, proposing the appointmento Ms Obiageli Ezekwesili and Mr Manish Kejriwal as the
A World o Friendships
-
7/30/2019 Pic of Bharti Airtel
42/245
A brie resume o the Directors proposed to be appointed/
re-appointed, as stipulated under Clause 49 o the Listing
Agreement with the Stock Exchanges, is appended as an
annexure to the Notice o the ensuing Annual General
Meeting.
Subsidiary Companies
As on March 31, 2013, your Company has 119 subsidiary
companies, as set out in page no. 227 o the Annual Report
(or abridged Annual Report please reer page no. 87).
Pursuant to the General Circular No. 2/2011, dated February
8, 2011, issued by the Ministry o Corporate Aairs,
Government o India, the Board o Directors have consented
or not attaching the balance sheet, statement o prot &
loss, and other documents, as set out in Section 212(1) o the
Companies Act, 1956, in respect o its subsidiary companies,
or the year ended March 31, 2013.
Annual accounts o these subsidiary companies, along
with related inormation, are available or inspection at theCompanys registered oce and the registered oce o the
respected subsidiary companies. Copies o the Annual Report
o the subsidiary companies will also be made available to
the investors o Bharti Airtel and those o the subsidiary
companies upon request.
The statement pursuant to the above reerred circular is
annexed on page no. 93 o the Abridged Annual Report and
page no. 234 o the ull version Annual Report.
Abridged Financial Statements
In terms o the provisions o Section 219(1)(b)(iv) o the
Companies Act, 1956, the Board o Directors has decided
to circulate printed copy o the Abridged Annual Report
containing salient eatures o the balance sheet and the
statement o prot & loss to the shareholders or the
nancial year 2012-13, who have not registered their email
id. Full version o the Annual Report will be available on
the Companys website, www.airtel.com, and will be sent to
the investors by email. To support the green initiative o the
Ministry o Corporate Aairs, the Company has also decided
to send all communications, including the Annual Report,
th h il t th h h ld h h i t d
to the requirements set out by SEBIs Corporate Governance
practices. The Company has implemented all the stipulations
prescribed.
A detailed report on Corporate Governance, pursuant to the
requirements o Clause 49 o the Listing Agreement, orms a
part o the Annual Report. However, in terms o the provisions
o Section 219(1)(b)(iv) o the Act and Clause 32 o the Listing
Agreement, the abridged Annual Report, excluding this
report, will be sent to the Companys members. Members
who desire to obtain the ull version o the report may write
to the Company Secretary at the registered oce addressand will be provided with a copy o the same. A certicate
rom the Companys Auditors, M/s. S. R. Batliboi & Associates
LLP, Chartered Accountants,Gurgaon, conrming compliance
o conditions o Corporate Governance, as stipulated under
Clause 49, is annexed to the report as Annexure A.
Corporate Social Responsibility and BusinessResponsibility Report
At Bharti Airtel, Corporate Social Responsibility (CSR)encompasses much more than social outreach programmes.
It lies at the heart o the Companys business operations.
Detailed inormation on the Companys CSR initiatives is
provided in this Annual Reports CSR section and the Business
Responsibility Report.
SEBI, vide its Circular CIR/CFD/DIL/8/2012 dated August
13, 2012, mandated the top 100 listed entities, based on
market capitalisation at BSE and NSE, to include BusinessResponsibility Report as a part o the Annual Report
describing the initiatives taken by the companies rom
Environmental, Social and Governance perspective.
Accordingly, a detailed report on Corporate Social
Responsibility and Business Responsibility Report orms a
part o the Annual Report. However, in terms o the provisions
o Section 219(1)(b)(iv) o the Act and Clause 32 o the Listing
Agreement, the Abridged Annual Report, excluding this
report, will be sent to the Companys members. Memberswho desire to obtain the ull version o the report may write
to the Company Secretary at the registered oce address and
will be provided with a copy o the same.
Sustainability Journey
-
7/30/2019 Pic of Bharti Airtel
43/245
Statutory Auditors
The Companys Statutory Auditors, M/s. S. R. Batliboi &Associates LLP, Chartered Accountants, Gurgaon, retire at
the conclusion o the Companys ensuing Annual General
Meeting and have conrmed their willingness and eligibility
or re-appointment.
The Company has received letters rom the Auditors to the
eect that their re-appointment, i made, would be within the
prescribed limits under Section 224(1B) o the Companies Act,
1956, and that they are not disqualied or re-appointment
within the meaning o Section 226 o the said Act.
Auditors Report
The Board has duly examined the Statutory Auditors Report
to the accounts, which is sel explanatory. Clarications,
wherever necessary, have been included in the Notes to
Accounts section o the Annual Report.
As regards the comments under para i(a) o the annexure
to the Independent Auditors Report regarding updation o
quantitative and situation details relating to certain xed
assets, the Company has strengthened its processes whereby
the xed assets register or new assets is being updated or
the quantitative and situation details on a real time basis.
The Company has made signicant progress in updation
o the situation details or majority o the sites or past
period capitalisation, and intends to complete the site wise
updation o quantitative details as per the ongoing physicalverication plan.
Cost Auditors
Pursuant to the direction o the Central Government, the
Company has appointed M/s. R. J. Goel & Co., Cost Accountants,
as Cost Auditors or FY 2013-14. The Cost Auditors will submit
their report or FY 2012-13 to the Government on or beore
the due date.
Secretarial Audit Report
The Company has appointed M/s. Chandrasekaran Associates,
Company Secretaries, New Delhi, to conduct its Secretarial
Audit or the nancial year ended March 31, 2013. The
Auditors have submitted their report conrming compliance
219(1)(b)(iv) o the Act and Clause 32 o the Listing Agreement,the Abridged Annual Report, excluding this annexure, will
be sent to the Companys members. Members who desire toobtain this inormation may write to the Company Secretaryat the registered oce address and will be provided with acopy o the same.
Energy Conservation, Technology Absorption, andForeign Exchange Earnings and Outgo
Being a service providing organisation, most o the inormationo the Company, as required under Section 217(1)(e) o the
Companies Act, 1956, read with the Companies (Disclosure oparticulars in the report o the Board o Directors) Rules, 1988,as amended, is not applicable. However, the inormation, asapplicable, has been given in Annexure B to this report.
Directors Responsibility Statement
Pursuant to Section 217(2AA) o the Companies Act, 1956, theDirectors, to the best o their knowledge and belie, conrmthat:
I. The applicable accounting standards have beenollowed, along with proper explanation relating tomaterial departures, in the preparation o the annualaccounts or the year ended March 31, 2013.
II. They have selected and applied consistently and madejudgments and estimates that are reasonable andprudent to give a true and air view o the Companysstate o aairs and prots, as at the end o the nancial
year.
III. They have taken proper and sucient care to maintainadequate accounting records in accordance with theprovisions o the Companies Act, 1956, and to saeguardthe Companys assets and to prevent and detect raudand other irregularities.
IV. They have prepared the annual accounts on a goingconcern basis.
Acknowledgements
Your Directors wish to place on record their appreciation tothe Department o Telecommunications (DoT), the CentralGovernment, the State Governments in India, Government oBangladesh, Government o Sri Lanka and Governments in
A World o Friendships
-
7/30/2019 Pic of Bharti Airtel
44/245
Annexure A
To
The Members o Bharti Airtel Limited,
We have examined the compliance o conditions o CorporateGovernance by Bharti Airtel Limited (the Company),or the
year ended March 31, 2013, as stipulated in Clause 49 o theListing Agreement o the said Company with Stock Exchangesin India.
The compliance o conditions o Corporate Governance is theresponsibility o the management. Our examination was
limited to procedures and implementation thereo, adopted bythe Company or ensuring the compliance o the conditions oCorporate Governance. It is neither an audit nor an expressiono opinion on the nancial statements o the Company.
In our opinion and to the best o our inormation and accordingto the explanations given to us, we certiy that the Company
has complied with the conditions o Corporate Governance as
stipulated in the above mentioned Listing Agreement.
We state that such compliance is neither an assurance as
to the uture viability o the Company nor the eectiveness
with which the management has conducted the aairs o the
Company.
For S. R. Batliboi & Associates LLP
Chartered Accountants
ICAI Firm Registration No: 101049W
per Nilangshu Katriar
Partner
Membership No: 58814
Place: New DelhiDate: May 2, 2013
Auditors Certifcate Regarding Compliance o Conditions o Corporate Governance
Annexure B
Inormation relating to conservation o energy, technology absorption, research and development, and oreignexchange earnings and outgo orming parts o Directors Report in terms o Section 217(1)(e) o the CompaniesAct, 1956, read with the Companies (Disclosure o Particulars in the Report o the Board o Directors) Rules, 1988
Conservation o Energy and Technology Absorption
The inormation in Part A and B, pertaining to conservationo energy and technology absorption, are not applicable toBharti Airtel, as it is a telecommunication services provider.However, the Company requires energy or its operationsand every endeavour has been made to ensure the optimumenergy use, avoid wastage and conserve energy as much as
possible.The Company continuously evaluates global innovation andtechnology as a benchmark and, whenever required, entersinto arrangements to avail o the latest technology trendsand practices.
F i E h E i d O t
Telecom Services in Other Countries
Bharti Airtel Lanka (Pvt) Limited is Sri Lankas astestgrowing wireless service provider. It expanded its ootprint bystarting commercial operations in the countrys eastern andnorthern parts. Airtel Lanka ended the nancial year with 1.7Mn customers. The Company continues to gain leadership inboth incremental customer market share and revenue market
share through aggressive marketing and strong distributionnetwork.
Airtel Bangladesh Limited continues to grow and currentlyhas over 6.2 Mn customers. The Company has 135distributors and over 96,000 retailers across the country.In the six markets, which are extremely competitive or the
-
7/30/2019 Pic of Bharti Airtel
45/245
Annexure C
S. No. Particulars ESOP Scheme 2005 ESOP Scheme 2001
1) Number o stock options granted 27,397,047* 40,530,078**
2) Pricing Formula Exercise Price not less than the par
value o the equity share and not
more than the price prescribed underChapter VII o the SEBI (Issue o
Capital and Disclosure Requirements)
Regulation, 2009 on Grant Date