Bharti Airtel

EQUITIES AND LIABILITIES

Mar 18
SHAREHOLDER'S FUNDS
Equity Share Capital 1,998.70
Total Share Capital 1,998.70
Revaluation Reserves 0.00
Reserves and Surplus 100,862.20
Total Reserves and Surplus 100,862.20
Total Shareholders Funds 102,860.90
NON-CURRENT LIABILITIES
Long Term Borrowings 54,468.10
Deferred Tax Liabilities [Net] 0.00
Other Long-Term Liabilities 3,784.90
Long Term Provisions 183.00
Total Non-Current Liabilities 58,436.00
CURRENT LIABILITIES
Short Term Borrowings 10,947.70
Trade Payables 17,699.00
Other Current Liabilities 14,867.50
Short Term Provisions 126.20
Total Current Liabilities 43,640.40
Total Capital and Liabilities 204,937.30
ASSETS
NON-CURRENT ASSETS
Tangible Assets 47,691.10
Intangible Assets 74,918.30
Capital Work-In-Progress 2,738.70
Intangible Assets Under Development 2,804.00
Fixed Assets 128,152.10
Non-Current Investments 48,128.20
Deferred Tax Assets [Net] 1,424.40
Long Term Loans and Advances 1,029.00
Other Non-Current Assets 4,707.70
Total Non-Current Assets 183,441.40
CURRENT ASSETS
Current Investments 0.00
Inventories 6.30
Trade Receivables 4,319.60
Cash and Cash Equivalents 545.10
Short Term Loans and Advances 7,249.60
OtherCurrentAssets 9,375.30
Balance Sheet of Bharti Airtel ------------------- in Rs. Cr. -------------------

Total Current Assets 21,495.90

Total Assets 204,937.30
OTHER ADDITIONAL INFORMATION
CONTINGENT LIABILITIES, COMMITMENTS
Contingent Liabilities 31,187.00
CIF VALUE OF IMPORTS
Capital Goods 0.00
EXPENDITURE IN FOREIGN EXCHANGE
Expenditure in Foreign Currency 19,654.00
REMITTANCES IN FOREIGN CURRENCIES FOR DIVIDENDS
Dividend Remittance in Foreign Currency -
EARNINGS IN FOREIGN EXCHANGE
FOB Value of Goods -
Other Earnings 4,508.80
BONUS DETAILS
Bonus Equity Share Capital 1,566.39
NON-CURRENT INVESTMENTS
Non-Current Investments Quoted Market Value 31,301.50
Non-Current Investments Unquoted Book Value 14,017.10
CURRENT INVESTMENTS
Current Investments Quoted Market Value -
Current Investments Unquoted Book Value -

Ratio Analysis of Bharti Airtel: -

Liquidity Ratios
Current ratio = current assets ÷ current liabilities
= 21495.90/43640.40
=0.49256881 times.
Quick ratio = (cash + short-term marketable securities + accounts receivable) ÷ current
liabilities
= 7794.7/43640.40
= .178612020054 times.
Cash ratio = (cash + short-term marketable securities) ÷ current liabilities
 = 7794.7/43640.40
= 0.178612020054 times.

Solvency Ratios
Debt-to-assets ratio = total debts ÷ total assets
= 58436+43640.40/ 204967.30
= 0.498086

Debt-to-capital ratio = total debt* ÷ (total debt* + total shareholder’s equity)

= 58436 / (58436+102860.90)
=0.36229
Debt-to-equity ratio = total debt* ÷ total shareholder’s equity
= 58436 / 102860.90
= 0.568107
Interest coverage ratio = earnings before interest and taxes ÷ interest payments
= 17442.1 / 5069.00 = 3.41 times

Profitability Ratios
Gross profit margin = gross income ÷ net revenue
= 53300.2 ÷ 79.2 = 672.9823%
Operating profit margin = operating income ÷ net revenue
= 33.17%
Net profit margin = net income ÷ net revenue
= 0.14%
Return on assets (ROA) = net income ÷ total assets
= 79/168276.7 = .000469465%
Return on equity (ROE) = net income ÷ total stockholder’s equity
= 79 ÷ 1998.7 = 0.0395257%
Balance Sheet
of Vodafone ------------------- in Rs. Cr. -------------------

Idea Limited

Mar 18
12 mths
EQUITIES AND LIABILITIES
SHAREHOLDER'S FUNDS
Equity Share Capital 4,359.30
Total Share Capital 4,359.30
Reserves and Surplus 21,310.20
Total Reserves and Surplus 21,310.20
Total Shareholders Funds 25,669.50
NON-CURRENT LIABILITIES
Long Term Borrowings 56,940.80
Deferred Tax Liabilities [Net] 0.00
Other Long Term Liabilities 3,166.30
Long Term Provisions 308.00
Total Non-Current Liabilities 60,415.10
CURRENT LIABILITIES
Short Term Borrowings 21.70
Trade Payables 3,560.50
Other Current Liabilities 7,034.50
Short Term Provisions 21.80
Total Current Liabilities 10,638.50
Total Capital And Liabilities 96,723.10
SSETS
NON-CURRENT ASSETS
Tangible Assets 83,293.10
Intangible Assets 0.00
Capital Work-In-Progress 0.00
Intangible Assets Under Development 0.00
Fixed Assets 83,293.10
Non-Current Investments 1,858.30
Deferred Tax Assets [Net] 822.00
Long Term Loans and Advances 2.40
Other Non-Current Assets 2,192.60
Total Non-Current Assets 88,168.40
CURRENT ASSETS
Current Investments 4,527.90
Inventories 33.90
Trade Receivables 887.40
Cash and Cash Equivalents 22.30
Short Term Loans and Advances 2.00
OtherCurrentAssets 3,081.20
Total Current Assets 8,554.70
Total Assets 96,723.10
OTHER ADDITIONAL INFORMATION
CONTINGENT LIABILITIES, COMMITMENTS
Contingent Liabilities 0.00
CIF VALUE OF IMPORTS
Capital Goods 0.00
EXPENDITURE IN FOREIGN EXCHANGE
Expenditure in Foreign Currency 0.00
REMITTANCES IN FOREIGN CURRENCIES FOR DIVIDENDS
Dividend Remittance in Foreign Currency -
EARNINGS IN FOREIGN EXCHANGE
FOB Value of Goods -
Other Earnings -
BONUS DETAILS
Bonus Equity Share Capital -
NON-CURRENT INVESTMENTS
Non-Current Investments Quoted Market Value -
Non-Current Investments Unquoted Book Value -
CURRENT INVESTMENTS
Current Investments Quoted Market Value -
Current Investments Unquoted Book Value -

Ratio Analysis of Vodafone Idea ltd.: -

Liquidity Ratios
Current ratio = current assets ÷ current liabilities

= 8554.7/10638.5

=0.804126 times.
Quick ratio = (cash + short-term marketable securities + accounts receivable) ÷ current liabilities.
= 22.3/10638.5

= 0.00209 times.

Cash ratio = (cash + short-term marketable securities) ÷ current liabilities

= 22.3/10638.5

= 0.00209 times.

Solvency Ratios

Debt-to-assets ratio = total debts ÷ total assets

= 60107+10638.5-21.8-308 / 96723.1

= 0.72801%

Debt-to-capital ratio = total debt* ÷ (total debt* + total shareholder’s equity)

= 70415 / (70415 / 102860.90)

=0.36229%

Debt-to-equity ratio = total debt* ÷ total shareholder’s equity

= 58436 / 102860.90

= 0.568107%

Interest coverage ratio = earnings before interest and taxes ÷ interest payments

= 5943.90 / 4924.50 = 1.207005 times

Profitability Ratios

Gross profit margin = gross income ÷ net revenue

= 28126.80 / 277828.60

= .1012379%

Operating profit margin = operating income ÷ net revenue

= 5645.70 / 27828.60

= .20287%

Net profit margin = net income ÷ net revenue

= - 17.17%

Return on assets (ROA) = net income ÷ total assets

= -4780.60 / 96723.1

= -0.049425%

Return on equity (ROE) = net income ÷ total stockholder’s equity

= -4780.60 / 25669.5

= -0.186236 %
CONCLUSION: -

We can here see that there is a lot of difference between two above mentioned companies.
Airtel has more cash liquidity more dividend for the shareholders. While on the other hand
Vodafone Idea have a huge debt and interest payable on the debt as well falling the price of the
shares not suggest good indicates. For longer perspective one can buy Voda Idea because
share price may rise in future but Airtel is the company which can become your cash cow from
week one.