pic of bharti airtel

7/30/2019 Pic of Bharti Airtel

1/245


2/245


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


4/245

A World of Friendships

A World o Friendships

`803.1BnGlobal revenues inRanked globally

4th

4th

Addressablepopulation*

1.8 BnCountry presence

20



5/245Countries where 3G

14In 11 countries*

No. 1Service brand in India*

No. 1

1st

1st

4G network in India

One 3G


6/245


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



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


8/245


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


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.


10/245


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.


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.


12/245


Board o Directors

Gopal Vittal

Manish Kejriwal

Obiageli

Ezekwesili

Nikesh Arora


13/245

Rajan Bharti

Mittal

Manoj Kohli

Pulak Prasad


14/245


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


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


16/245


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.


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


18/245


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


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


20/245


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


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.


22/245


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


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


24/245


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.


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.


26/245


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.


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


28/245


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


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



30/245


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


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



32/245


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.


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.



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


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?



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


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.



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)


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).



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


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



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


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



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


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

pic of bharti airtel

Documents