7. Balance Sheet as on March 31, 2009 As on 31st March 2008 (Rs. ‘000) As on 31st march 2009 (Rs. ‘000)
8. Directors’ Report Companies achievements in the financial year Financial results and Liquidity Dividend Quality Highlights of the year Corporate Governance and CSR Capital Market ratings and Share capital Auditors' Report Directors Responsibility statement
9. Report on Corporate Governance Corporate Governance Practices in Airtel Compliance with regulatory and fiduciary requirements in letter and spirit Ensuring complete and timely disclosure of relevant financial and operational information Adoption of policy on tenure of directors, rotation of auditors and code of conduct Creation of various committees for audit, senior management compensation, HR policy, management compensation and so on. Informal meeting of independent directors that meets prior to commencement of every board meeting A formal induction schedule for new members Independence of Directors in reviewing and approving corporate strategy, major business plans and activities Well defined corporate structure that establishes checks and balances and delegates decision making to appropriate levels in organization
10. Report on Corporate Governance (contd.) Corporate Governance Rating: CRISIL has assigned Governance and Value Creation(GVC) rating viz. "CRISIL GVC Level1" on Corporate Governance and value creation practices of the company. Board of Directors: In Compliance with the Listing Agreements, FDI guidelines, other statutory provisions and the terms of the shareholders' agreement, the board has 16 members with executive Chairman & Managing Director and CEO & Joint Managing Director, besides 14 non-executive directors of whom 8 are independent directors. Governance Structure: Clear demarcation of duties and responsibilities amongst the three positions in the organization structure. The Corporate Governance Structure is multi-tiered, comprising governing boards at various levels, each of which are interlinked
11. Board Committee
12. Industry Structure and Developments Indian Telecom Industry Regulatory Changes Regulation on QoS Interconnection Regulation for Broadcasting Sector QoS Regulation for DTH operators Interconnection Usage Charge(IUC) Regime Regulatory work-in-progress Universal Service Obligation (USO) and Rural Telephony Spectrum Charges MVNO (Mobile Virtual Network Operator)
13. Segment Wise Performance Company added 31+ million customers in FY2008-09 Mobile Services Market share of 24% of the wireless market Revenues earned 304,188mn, growth of 39% Contributed 81% to the consolidated revenues Telemedia Services 2.7+ million customer base, growth of 19.3% Focus on SMB’s Gross revenue growth of 17% Enterprise Services Carriers – i2i submarine cable system, Gross revenue growth 56% Corporates – satellite services, Gross revenue growth 18%
21. Not made any preferential allotment of shares to parties or companies
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23. Low debt burden: For the first time since its inception, the company has reported a free cash flow of Rs 400 cr.
24. VAS Growth: 7.8% growth has occurred in VAS. At the same time, the contribution of the VAS has increased to 10% of ARPU.
25. ECB norms eased: In the month of October, RBI eased the ECB norms allowing telecom companies to raise funds through ECBs to bid for 3G spectrum.
26. USO levy reduction: Bharti is awaiting clarification on definition of development blocks for 2% reduction of USO (Universal Service Obligation) levy .
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28. Recent Developments Bharti, along with IBM, is working on the concept of a single bill for customers Strategic tie-up with Infosys Technologies to roll out its DTH services. SBI, HDFC, ICICI banks have partnered with Bharti Airtel to offer m-banking. Successful partnership with various leading companies like Singapore Telecom, IBM, Nokia Siemens Network, Ericsson, etc. Launch of a joint venture company - IFFCO Kisan Sanchar Limited (IKSL) to popularize mobile telephone service in the rural areas of Karnataka.
