Mittal School of Business Faculty of Business and arts

Name of the faculty member: Dr. Shaiku Shahida Saheb

Course Code: ACC306 Course Title: Financial Statement Analysis

Academic Task No: 3 Academic Task Title: Class assignment 3
Date of Allotment: 11-04-2023 Date of Submission: 23-04-2023
Student Roll No: RQ4E73A31 Student Reg. No: 12111856
Term: 4 Section: Q4E73
Max. Marks: 30 Marks. Obtained:
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I declare that this Assignment is my individual work. I have not copied it from any other students’
work or from any other source except where due acknowledgement is made explicitly in the text,
nor has any part been written for me by any other person.

Evaluation Criterion: Rubrics on different parameters

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 INTRODUCTION

Bharti Airtel Limited, commonly known as Airtel, is an Indian multinational

telecommunications company headquartered in New Delhi, India. It operates in 18 countries
across South Asia and Africa. Airtel provides various telecommunications services, including
mobile, broadband, and fixed-line services. Airtel was founded in 1995 and has since grown to
become one of the largest telecommunications companies in India and the world. As of
September 2021, Airtel had over 345 million subscribers across its various services. The
company is known for its innovative services and initiatives, such as Airtel Payments Bank,
which provides financial services to its customers, and Airtel Xstream, which offers streaming
services. Airtel is also committed to social responsibility initiatives, including education,
healthcare, and environmental sustainability.
1. Services: Airtel provides various services, including mobile services, broadband, and
fixed-line services. It also offers digital TV and Airtel Payments Bank services.
2. Network coverage: Airtel has a vast network coverage across India and operates in 18
countries in Africa and South Asia. The company has made significant investments in
expanding its network and improving its services.
3. Partnerships: Airtel has partnered with various companies to provide innovative
services to its customers. For example, it has partnered with Amazon to offer free access
to Amazon Prime Video, and with Netflix to offer Netflix content on its
platform. Awards and recognition: Airtel has received numerous awards and
recognition for its services and initiatives. For example, it was named India's most
admired brand in a survey conducted by Fortune India in 2020.
4. Social responsibility: Artel is committed to various social responsibility initiatives,
including education, healthcare, and environmental sustainability. The company has set
up various programs and initiatives to support these causes.
Airtel is a leading telecommunications company in India and has a strong presence in other
countries. It is known for its innovative services, network coverage, and social responsibility
initiatives.
 MISSION OF THE COMPANY

The mission of Bharti Airtel is to leverage the power of communication to create a better world.
The company's mission statement is "Enriching lives by bridging the digital divide". Airtel
aims to achieve this mission by providing affordable and innovative telecommunications
services to its customers and by leveraging technology to address social and environmental
issues. Airtel has also set out a specific vision for itself, which is "To be the most loved brand
by 2025" This vision reflects the company's commitment to providing excellent customer
service and delivering innovative and high-quality products and services. In line with its
mission and vision, Airtel has launched various initiatives aimed at bridging the digital divide
and addressing social and environmental issues. For example, the company has launched the
Airtel Payments Bank, which provides financial services to customers who may not have
access to traditional banking services. Airtel has also launched the Green Towers P7 initiative,
which aims to reduce the company's carbon footprint by using renewable energy sources to
power its network towers.

VISION OF THE COMPANY

The vision of Bharti Airtel is "to be the most loved brand by 2025". This vision reflects Airtel's
commitment to becoming the preferred choice for its customers by providing innovative and
high-quality products and services, and delivering excellent customer service. Airtel aims to
achieve this vision by continuously investing in technology and innovation, expanding its
network coverage, and improving the quality of its services. The company is also focused on
creating a strong brand image and building customer loyalty by engaging with its customers
and understanding their needs and preferences. To achieve its vision, Airtel has launched
various initiatives, such as Airtel Thanks, which rewards its customers with exclusive benefits
and privileges, and Airtel Xstream, which offers streaming services to its customers. The
company is also committed to providing affordable and accessible telecommunications
services to customers across India and in other countries where it operates. Overall, Airtel's
vision is focused on delivering value to its customers and becoming the most loved brand in its
industry by providing innovative and high-quality services and building strong relationships
with its customers.
 BUSINESS OF THE COMPANY

Bharti Airtel is primarily a telecommunications company that provides various services,

including mobile, broadband, and fixed-line services. The company also offers digital TV
services and Airtel Payments Bank services.
Here are some details about Airtel's business:
1. Mobile services: Airtel provides mobile services to customers in India and other
countries. It offers various plans and packages for voice and data services, including
prepaid and postpaid plans.
2. Broadband services: Airtel provides high-speed broadband services to customers in
India. It offers various plans and packages for home and business users.
3. Fixed-line services: Airtel offers fixed-line services, including voice and broadband
services, to customers in India.
4. Digital TV services: Airtel provides digital TV services, including satellite TV and
IPTV services, to customers in India.
5. Airtel Payments Bank: Airtel has launched
6. Airtel Payments Bank, which provides financial services, including savings accounts,
money transfer, and bill payments, to its customers.
Airtel has a vast network coverage across India and operates in 18 countries in Africa and South
Asia. The company has made significant investments in expanding its network and improving
its services to provide better customer experience. Airtel is also focused on developing
innovative services and initiatives to meet the evolving needs of its customers.
 MANAGEMENT OF THE COMPANY
Board of directors

NAME DIN DESIGNATION

Sunil Bharti Mittal CHAIRMAN

Gopal Vittal MANAGING DIRECTOR

Badal Bagri EXECUTIVE DIRECTOR

Shashwat Sharma EXECUTIVE DIRECTOR

Ajai puri INDEPENDENT DIRECTOR

Randeep sekhon INDEPENDENT DIRECTOR

The management team of Bharti Airtel is focused on delivering value to its customers and
stakeholders by providing innovative and high-quality services, expanding its network
coverage, and investing in technology and innovation. The team is also committed to
maintaining strong corporate governance and transparency in its operations.
 COMPETITORS

Bharti Airtel operates in a highly competitive telecommunications industry, and it faces

competition from various companies that offer similar services. Here are some of the main
competitors of Bharti Airtel in India:
1. Reliance Jio: Reliance Jio is one of the most prominent competitors of Bharti Airtel in
India. It is a subsidiary of Reliance Industries Limited and offers mobile, broadband,
and fixed-line services.
2. Vodafone Idea: Vodafone Idea is another significant competitor of Bharti Airtel. It is a
joint venture between Vodafone Group PLC and Aditya Birla Group, and it offers
mobile, broadband, and fixed-line services.
3. BSNL: Bharat Sanchar Nigam Limited (BSNL) is a state-owned telecommunications
company in India. It offers mobile, broadband, and fixed-line services.
4. Tata Teleservices: Tata Teleservices is a subsidiary of Tata Group and offers mobile,
broadband, and fixed-line services.
5. MTNL: Mahanagar Telephone Nigam Limited (MTNL) is a state-owned
telecommunications company that operates in the Mumbai and Delhi regions of India.
It offers mobile, broadband, and fixed-line services.
These competitors of Bharti Airtel are also investing heavily in network expansion, technology,
and innovation to provide better services to their customers. The competition in the
telecommunications industry in India is intense, and companies are continuously striving to
differentiate themselves and capture a larger share of the market.
 CASH FLOW STATEMENTS

A cash flow statement is a financial statement that shows how cash flows into and out of a
company over a specific period. It provides information about a company's cash inflows and
outflows from operating, investing, and financing activities. The cash flow statement is divided
into three sections:
1. Operating activities: This section includes the cash inflows and outflows from
company's primary operations. These activities could include sales, purchases of
inventory, payments to suppliers, and payments to employees.
2. Investing activities: This section includes the cash inflows and outflows from a
company's investments. These activities could include the purchase or sale of long-term
assets such as property, plant, and equipment, investments in securities or other
financial assets, and loans to other entities.
3. Financing activities: This section includes the cash inflows and outflows from a
company's financing activities. These activities could include issuing or buying back
shares of stock, borrowing or repaying loans, and paying dividends to shareholders.
The cash flow statement is an essential tool for investors and analysts to assess a company's
financial health and liquidity. It shows how a company generates and uses its cash, providing
insights into its operating, investing, and financing activities.
CASH FLOW STATEMENTS OF THE COMPANY FOR THREE YEARS

For the year 2021-22

For the year 2019-20
For the year 2018-17
 OPERATING ACTIVITIES

Operating activities in the cash flow statement refer to the cash inflows and outflows resulting
from the day-to-day operations of a business, such as the buying and selling of goods and
services, payment of salaries, and payment of taxes. The cash flow from operating activities is
a critical section of the cash flow statement, as it provides insights into the company's ability
to generate cash from its core business operations.
There are two methods for presenting the operating activities section in the cash flow statement:
1. Direct Method: This method shows the actual cash inflows and outflows related to
operating activities. It starts with the company's revenue and then lists all cash payments
made for expenses incurred during the period, such as cost of goods sold, operating
expenses, interest, and taxes.
2. Indirect Method: This method starts with the company's net income and then adjusts
it for non-cash items such as depreciation and amortisation, changes in working capital
items such as accounts receivable and payable, and other non-operating items such as
gains or losses from investments.
Regardless of the method used, the operating activities section provides a snapshot of a
company's cash position resulting from its primary business operations, which is a critical
indicator of a company's financial health. points to consider when understanding operating
activities in the cash flow statement:
1. Inflows and outflows of operating activities: Operating activities in the cash flow
statement include cash inflows and outflows that are directly related to the primary
business activities of the company. Examples of cash inflows from operating activities
include revenue from the sale of goods or services, interest received, and dividends
 received. Examples of cash outflows from operating activities include payment of
wages and salaries, payment of suppliers, payment of taxes, and payment of interest.
2. Non-cash items: Non-cash items, such as depreciation, amortisation, and changes in
deferred taxes, can also impact the operating activities section of the cash flow
statement. These items represent adjustments to the company's net income to account
for the fact that these expenses do not represent a cash outflow in the current period.
3. Changes in working capital: Changes in working capital can also impact the operating
activities section of the cash flow statement. For example, an increase in accounts
receivable or a decrease in accounts payable would represent a use of cash in the current
period, while a decrease in accounts receivable or an increase in
accounts payable would represent a source of cash.
4. Importance of operating cash flow: Operating cash flow is an important measure of
a company's financial health because it represents the amount of cash that a company
generates from its core business activities. A positive cash flow from operations
indicates that a company has generated sufficient cash from its operations to cover its
operating expenses, invest in capital expenditures, pay dividends to shareholders, and
repay debt.
5. Analysis of operating cash flow: Investors and analysts often analyse a company's
operating cash flow to assess its financial health and sustainability. A company with
consistently positive operating cash flow may be seen as a better investment
opportunity than a company with negative or fluctuating operating cash flow.

Operating activities For the year 2021-2022

The provided data is the cash flow statement of a company for the years ended March 31, 2021
and March 31, 2022.
1) In the cash flows from operating activities section, the company's net cash
generated from operations before tax was IN 586.392 crore for 2022 and IN
550.166 crore for 2021.
2) The company's operating activities resulted in a net cash inflow of IN 571.920
crore for 2022 and IN 504.378 crore for 2021 after adjusting for changes in
assets and liabilities. The adjustments made to profit before tax include items
such as depreciation and amortisation expenses, finance costs, gain on deemed
disposal of subsidiary, net gain on fair value through profit or loss (FVTPL)
 instruments, interest income, net loss on derivative financial instruments, share
of profit of joint ventures and associates (net), exceptional items (net), employee
share-based payment expense, loss on sale of property, plant and equipment,
and other non-cash items.
3) The changes in assets and liabilities include items such as trade receivables,
trade payables, inventories, provisions, other financial and non-financial
liabilities, and other financial and non-financial assets.
4) In the cash flows from investing activities section, the company invested INR
418.696 crore in 2022 and IN 268.884 crore in 2021 for purchase of property,
plant and equipment, and capital work-in-progress. It also received IN 15.674
crore in 2022 and IN 24.433 crore in 2021 from the sale of property, plant and
equipment.
5) The company invested IN 31.184 crore in 2021 and received IN 67.556 crore in
2021 from the sale of non-current investments. It also received IN 24.239 crore
in 2022 and INR 3.131 crore in 2021 from dividends. The net cash used in
investing activities was INR 482.050 crore for 2022 and IN 248.143 crore for
2021.
6) Net cash generated from operating activities in 2022 was IN 482.05 crores,
which is a decrease from the previous year's figure of IN 550.17 crores. This
decrease can be attributed to a decrease in net profit before tax and changes in
assets and liabilities.
7) Depreciation and amortisation expenses amounted to IN 165.24 crores, which
is a significant portion of the adjustments made to arrive at operating cash flows.
This suggests that the company has a large fixed asset base, which requires
regular maintenance and replacement.
8) Changes in assets and liabilities had a significant impact on operating cash
flows. In particular, a decrease in trade payables and an increase in provisions
resulted in a cash outflow, while an increase in other financial and non-financial
liabilities and a decrease in other financial and non-financial assets resulted in
a cash inflow.
9) Cash flows from investing activities had a net outflow of IN 22.33 crores in
2022, compared to a net inflow of IN 297.09 crores in 2021. This can be
attributed to a decrease in proceeds from the sale of spectrum, non-current
investments, and tower subsidiary.
 10) The company received IN 71.99 crores in interest received in 2022, which was
higher than the previous year's figure of IN 24.19 crores. This suggests that the
company may have invested surplus funds in interest-bearing instruments.

Operating activities For the year 2020-2019

The provided data is the cash flow statement of a company for the years ended March 31, 2020
and March 31, 2019.
1) The loss before tax for the period is (428.465) units. Adjustments for depreciation and
amortisation expense, finance costs, finance income, share of profit of joint ventures
and associates (net), exceptional items (net), employee share-based payment expense,
loss / (profit) on sale of property, plant and equipment, and other non-cash items totalled
to 276.896, 137.261, (16.098), (6.524), (401.619), 357, 10, and 5.132 units respectively.
2) The total operating cash flow before changes in working capital is 370.188 units.
Changes in working capital including trade receivables, trade payables, inventories,
provisions, other financial and non-financial liabilities, and other financial and non-
financial assets were (14.240), (3,556), (32.792), 345, (175), and 11.909 units
respectively.
3) As a result, the net cash generated from operating activities for the period is 267.782
units. Income tax paid (net) is (8.925) units, and the final net cash generated from
operating activities is 200.702 units.

Operating activities For the year 2018-2017

The provided data is the cash flow statement of a company for the years ended March 31, 2018
and March 31, 2017.
1) Cash flows from operating activities: The company generated a net cash flow from
operating activities of $282.799 million. This is a positive figure, indicating that the
company's operations are generating cash inflows.
2) Profit / (loss) before tax: The company had a profit before tax of $32.67 million. This
is a positive figure, indicating that the company is earning profits before taxes.
3) Adjustments: The company made various adjustments to arrive at its operating cash
flows. These include depreciation and amortisation expenses of $192.431 million,
finance costs of $93.255 million, finance income of ($12.540) million, share of results
of joint ventures and associates of ($10.609) million, exceptional items of $325,000,
 employee share-based payment expense of $413,000, and other non-cash items of
$10.410 million.
4) Changes in working capital: The company made changes in its working capital, which
resulted in a net cash outflow of $31.587 million. This was primarily due to a decrease
in trade payables of $24.474 million and an increase in provisions of $15.122 million.
5) Net cash generated from operating activities: After adjusting for the changes in working
capital, the company generated a net cash flow from operating activities of $282.799
million. This is a positive figure, indicating that the company's operations are
generating cash inflows.
The company appears to be generating positive cash flows from its operations, which is a
positive sign for its financial health.

Comparison of all three years data

Based on the information provided, the three datasets represent the cash flows from operating
activities of Bharti Airtel company for 3 years. Here are some observations based on the
numbers:
o For the year ended March 31, 2022, the company generated a net cash flow from
operating activities of $586.392 million, compared to $550.166 million for the year
ended March 31, 2021.
o The company had a profit before tax of $124.831 million for the year ended March 31,
2022, compared to $330.907 million for the previous year.
o The adjustments for depreciation and amortisation expenses, finance costs, and net gain
on fair value through profit or loss instruments were significant in both years.
o For the year 2020-19 The company had changes in assets and liabilities, including trade
receivables, trade payables, inventories, provisions, and other financial and non-
financial assets and liabilities.
o Income tax paid was a significant outflow for the company.
o The company had a net cash flow from operating activities of $204.224 million,
generated from a loss before tax of $428.465 million.
o Depreciation and amortisation expenses, finance costs, and share of profit of joint
ventures and associates were the most significant adjustments.
o The company had changes in working capital, including trade payables, provisions, and
other financial and non-financial liabilities.
 o Income tax paid was also a significant outflow.
o For the year 2018-17 The company had a net cash flow from operating activities of
$282.799 million, generated from a profit before tax of $32.670 million.
o Depreciation and amortisation expenses, finance costs, and share of results of joint
ventures and associates were the most significant adjustments.
o The company had changes in working capital, including trade payables, provisions, and
other financial and non-financial liabilities.
o Income tax paid was also a significant outflow.

INVESTING ACTIVITIES

Investing activities refer to the acquisition and disposal of long-term assets and investments
that a company makes in order to generate future income and growth. These activities typically
involve significant sums of money and are carried out with the expectation of earning a return
on investment.
Examples of investing activities include:
1. Purchasing fixed assets such as property, plant, and equipment
2. Investing in securities such as stocks, bonds, and mutual funds
3. Acquiring other businesses through mergers and acquisitions
4. Loaning money to other businesses or individuals
5. Investing in research and development to create new products or technologies
Investing activities are an important part of a company's financial strategy and can have a
significant impact on its long-term success. By making strategic investments, companies can
grow their business, increase revenue, and improve profitability. However, investing activities
also involve risk, as investments may not perform as expected and can result in losses.
Therefore, companies must carefully evaluate potential investments and manage their portfolio
of investments to minimise risk and maximise returns. Investing activities can be categorized
as either capital expenditures or financial investments. Capital expenditures involve
investments in long-term assets that are used in the company's operations, such as buildings,
machinery, and equipment. These investments are made with the goal of generating future cash
flows and improving the company's productivity and efficiency.
Financial investments, on the other hand, involve investments in securities such as stocks,
bonds, and mutual funds. These investments are made with the goal of earning a return on
investment and generating income for the company. Financial investments may be held for the
long-term or sold in the short-term for a profit. Investing activities can have a significant impact
on a company's financial statements.
The cash flow statement provides information about a company's investing activities, including
cash inflows from the sale of investments and cash outflows for the purchase of long-term
assets and investments. The balance sheet also reflects a company's investing activities through
the value of its long-term assets and investments.
Investing activities can be affected by a variety of factors, including changes in economic
conditions, interest rates, and industry trends. Companies must carefully consider these factors
when making investment decisions and managing their portfolio of investments.
Investing activities are an important part of a company's financial strategy and can play a
critical role in its long-term success. By making strategic investments, companies can position
themselves for growth and profitability in the future.

Investing activities For the year 2021-2022

o Purchase of property, plant and equipment and capital work-in-progress: This shows
that the company has invested a significant amount of money in acquiring long-term
assets for its operations. The amount spent on this activity was $265.406 million.
o Proceeds from sale of property, plant and equipment: This indicates that the company
has sold some of its long-term assets, possibly to generate cash or streamline its
operations. The amount received from the sale was $13.791 million.
o Purchase of intangible assets and intangible assets under development: This indicates
that the company has invested in acquiring intangible assets such as patents or
copyrights. The amount spent on this activity was $8.593 million.
o Payment towards spectrum: This refers to the cost of acquiring rights to use radio
spectrum for telecommunication services. The company has paid $174.482 million
towards this activity.
o Proceeds from sale of spectrum: This shows that the company has sold some of its radio
spectrum, possibly to raise cash. The amount received from the sale was $10.048
million.
o Proceeds from sale of business: This shows that the company has sold a business unit
or division, possibly to focus on its core operations. The amount received from the sale
was $21.298 million.
o Proceeds from sale of current investments (net): This indicates that the company has
sold some of its short-term investments, possibly to generate cash or invest in other
opportunities. The amount received from the sale was $89,000.
o Proceeds from sale of non-current investments: This indicates that the company has
sold some of its long-term investments, possibly to generate cash or invest in other
opportunities. The amount received from the sale was $5.887 million.
o Purchase of non-current investments: This indicates that the company has invested in
acquiring long-term investments, possibly to generate future returns. The amount spent
on this activity was $26.208 million.
o Adjustment on account of deemed disposal of subsidiary: This refers to an accounting
adjustment related to the sale of a subsidiary. The amount involved in this adjustment
was $4.052 million.
o Proceeds from sale of tower subsidiary: This indicates that the company has sold a
subsidiary that operates towers for telecommunications services. The amount received
from the sale was $418.696 million.
o Investment in associates / joint venture: This indicates that the company has invested
in an associate or joint venture, possibly to gain access to new markets or technologies.
The amount spent on this activity was $248.143 million.
o Repayment of loan given to joint venture: This indicates that the company has received
repayment of a loan given to a joint venture. The amount received was $1.437 million.
o Dividend received: This indicates that the company has received dividends from its
investments in other companies. The amount received was $24.433 million.
o Interest received: This indicates that the company has received interest income from its
investments. The amount received was $63.240 million.
 o Net cash used in investing activities: This is the sum of all the above cash flows related
to investing activities. The company has used a net amount of $268.884 million in
investing activities. This indicates that the company has invested more than it has
received from its investments during this period.

Investing activities For the year 2020-2019

o Purchase of property, plant and equipment and capital work-in-progress: This shows
that the company has invested a significant amount of money in acquiring long-term
assets for its operations. The amount spent on this activity was $191.902 million.
o Proceeds from sale of property, plant and equipment: This indicates that the company
has sold some of its long-term assets, possibly to generate cash or streamline its
operations. The amount received from the sale was $1.317 million.
o Purchase of intangible assets: This indicates that the company has invested in acquiring
intangible assets such as patents or copyrights. The amount spent on this activity was
$15.266 million.
o Payment towards spectrum - Deferred payment liability: This refers to the cost of
acquiring rights to use radio spectrum for telecommunication services. The company
has paid $15.424 million towards this activity.
o Net movement in current investments: This indicates the net amount of cash used in
short-term investments during the period. The company used $85.236 million in this
activity.
o Sale of non-current investments: This indicates that the company has sold some of its
long-term investments, possibly to generate cash or invest in other opportunities. The
amount received from the sale was $2.950 million.
o Purchase of non-current investments: This indicates that the company has invested in
acquiring long-term investments, possibly to generate future returns. The amount spent
on this activity was $1.345 million.
o Consideration / advance for acquisitions, net of cash acquired: This refers to the cost of
acquiring other companies, net of cash acquired from those companies. The net amount
spent on this activity was $4.748 million.
o Sale of tower assets: This indicates that the company has sold tower assets, possibly to
generate cash or streamline its operations. The amount received from the sale was
$304.919 million.
 o Investment in associates: This indicates that the company has invested in an associate,
possibly to gain access to new markets or technologies. The amount spent on this
activity was $260.971 million.
o Dividend received: This indicates that the company has received dividends from its
investments in other companies. The amount received was $1.225 million.
o Interest received: This indicates that the company has received interest income from its
investments. The amount received was $33.804 million.
o Net cash used in investing activities: This is the sum of all the above cash flows related
to investing activities. The company has used a net amount of $285.009 million in
investing activities. This indicates that the company has invested more than it has
received from its investments during this period.

Investing activities For the year 2018-2017

o Purchase of property, plant and equipment. $245,259
o Proceeds from sale of property, plant and equipment: $5,655
o Purchase of intangible assets: $17,749
o Payment towards Spectrum - Deferred payment liability: $9,909
o Net movement in current investments: ($50,259) - This negative number indicates that
more cash was invested in current investments than the cash received from the sale of
these investments.
o Purchase of non-current investments: $36,495
o Sale of non -current investments: ($19,498)
o Investment in subsidiary, net of cash acquired/associate: $10,377 - This indicates the
net cash outflow from investing in a subsidiary or associate company, after adjusting
for the cash acquired.
o Sale of subsidiaries: $5,662, Sale of tower assets: ($223,030)
o Investment in associates: ($1,55,673) - This indicates the net cash outflow from
investing in an associate company.
o Proceeds from sale of interest in associate/joint venture: $9,789
o Dividend received: $2,305
o Net cash used in investing activities: ($306,044) - This indicates the total cash outflow
from all investing activities during the period.
 the company invested a significant amount of cash in purchasing property, plant, and
equipment, intangible assets, and non-current investments. The proceeds from the sale of
property, plant, and equipment, non-current investments, and subsidiaries partially offset
the cash outflow. However, the net cash outflow from investing activities was substantial,
indicating that the company invested more cash than it received from its investments during
the period.
Comparison of all three years data
The three datasets represents the cash flows from investing activities for different periods. Here
is a comparison of the key differences:
1. Magnitude of the cash flows: The magnitude of the cash flows varies significantly
across the three datasets. The first dataset has the largest total cash outflow from
investing activities, with a value of ($628,621). The second dataset has a lower total
cash outflow of ($285,009), while the third dataset has the lowest total cash outflow of
($306,044).
2. Composition of the cash flows: The composition of the cash flows also differs across
the three datasets. In the first dataset, the largest cash outflows were for the purchase of
property, plant, and equipment and capital work-in-progress, while the largest cash
inflows were from the sale of tower subsidiaries and the sale of non-current
investments. In the second dataset, the largest cash outflows were for the purchase of
property, plant, and equipment and intangible assets, while the largest cash inflows
were from the sale of non-current investments and proceeds from the sale of tower
assets. In the third dataset, the largest cash outflows were for the purchase of property,
plant, and equipment, investment in associates, and payment towards Spectrum -
Deferred payment liability, while the largest cash inflows were from the sale of
subsidiaries and proceeds from the sale of interest in associate/joint venture.
3. Change over time: Finally, it is important to note that the cash flows from investing
activities can vary significantly from one period to another. The changes in the
composition and magnitude of the cash flows can reflect changes in the company's
strategic priorities, market conditions, and investment opportunities. Therefore, it is
important to analyse the cash flows from investing activities in the context of the
company's overall financial performance and long-term strategy.
FINANCING ACTIVITIES

Financing activities refer to the cash flows that result from transactions involving the
company's capital structure, such as raising or repaying debt, issuing or repurchasing equity,
and paying dividends to shareholders. Here are some examples of financing activities:
1. Proceeds from issuance of long-term debt
2. Repayment of long-term debt
3. Payment of finance lease liabilities
4. Proceeds from issuance of equity shares
5. Repurchase of equity shares
6. Payment of dividends to shareholders
7. Proceeds from government grants related to financing activities
here are some more examples of financing activities:
1. Issuing stocks: A company can raise funds by issuing new shares of stock to investors.
The proceeds from the sale of these shares are considered a financing activity.
2. Repurchasing stocks: When a company buys back its own shares from the market, it is
called a stock repurchase. This is also considered a financing activity.
3. Issuing bonds: A company can issue bonds to raise funds. The proceeds from the sale
of these bonds are considered a financing activity.
4. Repaying debt: When a company makes payments to repay its debt, it is considered a
financing activity.
5. Payment of dividends: When a company pays dividends to its shareholders, it is
considered a financing activity.
 6. Lease financing: A company can lease assets such as equipment, buildings, and vehicles
to raise funds. The lease payments made by the lessee are considered a financing
activity.
7. Obtaining loans: When a company obtains a loan from a bank or other financial
institution, the funds received are considered a financing activity.
8. Repaying loans: When a company repays a loan, the repayment is considered a
financing activity.
9. Issuing preferred stock: A company can issue preferred stock to raise funds. The
proceeds from the sale of these shares are considered a financing activity.
10. Payment of finance lease liabilities: When a company makes payments to repay its
finance lease liabilities, it is considered a financing activity.

Financing activities For the year 2021-2022

The data represents the cash flows from financing activities for the years ending on March 31,
2022, and March 31, 2021.
• The company received net proceeds of 52,226 and 254,785 from issuing shares in the
years 2022 and 2021, respectively. It also received proceeds of 63,649 from short-term
borrowings in 2022. However, the company repaid 337,212 and 76,427 of its long-term
borrowings in 2022 and 2021, respectively, resulting in a net cash outflow.
• The company also paid 76,427 and 71,294 towards lease liabilities in 2022 and 2021,
respectively. It used 598 and 152,032 to purchase treasury shares in 2022 and 2021,
respectively, resulting in a net cash outflow.
• The company paid 14,438 and 10,243 as dividends in 2022 and 2021, respectively.
Additionally, it paid 13,523 and 26,906 towards bond issue expenses in 2022 and 2021,
respectively.
• The company received net proceeds of 10,880 from issuing perpetual bonds to NCI in
2022 and 3,919 from the exercise of share options in 2021. It also received 36,048 and
130,539 from the sale of shares of subsidiary to NCI in 2022 and 2021, respectively.
• The net cash outflow from financing activities was 409,779 and 35,937 in 2022 and
2021, respectively. The net decrease in cash and cash equivalents during the year was
64,206 and 3,972 in 2022 and 2021, respectively.
Financing activities For the year 2020-2019
The cash flows from financing activities for the year ended March 31, 2020, amounted to INR
130,539 million. This is a significant increase compared to the cash flows from financing
activities for the year ended March 31, 2021, which amounted to IN 90,630 million.
The significant items in the cash flows from financing activities for the year ended March
31, 2022, are as follows:
o Net proceeds from issue of shares (Rights issue) amounted to IN 248,759 million, which
indicates that the company raised significant funds through the issue of shares.
o Net proceeds from issue of shares (QIP) amounted to INR 143,055 million, which
indicates that the company raised funds through qualified institutional placement.
o Proceeds from borrowings amounted to IN 377,400 million, which indicates that the
company borrowed a significant amount of funds during the year. Repayment of
borrowings amounted to IN 439,813 million, which indicates that the company repaid
a significant amount of its borrowings during the year.
o Repayment of lease liabilities amounted to INR 47,740 million.
o Net repayments / proceeds from short-term borrowings amounted to IN (117,140)
million.
o Interest and other finance charges paid amounted to INR 109,993 million.
o Dividend paid (including tax amounted to INR 18,263 million.
o Net proceeds from issuance of equity shares to Non-controlling interest amounted to
IN 57,144 million.
o Net proceeds from issuance of perpetual bonds to Non controlling interest amounted to
INR 71,370 million.
o Net cash generated from financing activities for the year ended March 31, 2022,
amounted to IN 130,539 million.
o The cash and cash equivalents as at the end of the year amounted to INR 94,638 million,
indicating that the company had sufficient liquidity to meet its short-term obligations.

Financing activities For the year 2018-2017

The dataset represents the cash flows from financing activities for a company. Here is a
breakdown of each item:
• Repayment of borrowings: The company has repaid 197,664 in borrowings during the
year.
 o Net proceeds from short-term borrowings: The company has received 130,717 in net
proceeds from short-term borrowings during the year.
o Proceeds from sale and finance leaseback of towers: The company has received 26,874
in proceeds from the sale and finance leaseback of towers during the year.
o Purchase of treasury shares: The company has purchased 2,958 worth of treasury shares
during the year.
o Interest and other finance charges paid: The company has paid 3,932 in interest and
other finance charges during the year.
o Proceeds from exercise of share options: The company has received 424 in proceeds
from the exercise of share options during the year.
o Dividend paid including tax: The company has paid 44,041 in dividends, including tax,
during the year.
o Proceeds from issuance of equity shares to NCI: The company has received 13 in
proceeds from the issuance of equity shares to non-controlling interests during the year.
o Sale of interest in a subsidiary: The company has sold an interest in a subsidiary,
resulting in a net cash inflow of 32,652.
o Purchase of shares from NCI: The company has purchased 21 worth of shares from
non-controlling interests during the year.
o Net cash generated from / (used in) financing activities: The company has generated
57,189 in net cash from financing activities during the year.
o Net increase / (decrease) in cash and cash equivalents during the year: The company
has experienced a net increase of 19,205 in cash and cash equivalents during the year.
o Effect of exchange rate on cash and cash equivalents: The effect of exchange rate
changes on the company's cash and cash equivalents during the year was a positive
6,277.
o Cash and cash equivalents as at beginning of the year: The company had 3,899 in cash
and cash equivalents at the beginning of the year.
o Cash and cash equivalents as at end of the year: The company had 28,468 in cash and
cash equivalents at the end of the year.
The company has generated positive net cash from financing activities and experienced a net
increase in cash and cash equivalents during the year. It has also repaid some borrowings,
received net proceeds from short-term borrowings, and paid dividends.
Comparison of all three years data
• Firstly, we can see that the net cash generated from financing activities has decreased
over the three years. In 2020, the net cash generated from financing activities was INR
197,664 lakhs, while in 2021 it decreased to INR 38,067 lakhs, and in 2022 it further
decreased to INR -9,880 lakhs. This indicates that the company may have been facing
challenges in generating cash through financing activities, or they may have been
prioritising other activities.
• Secondly, we can see that the net proceeds from issuance of shares have varied over the
three years. In 2020, the company received IN 143,055 lakhs from a rights issue and
INR 70,456 lakhs from a QIP. In 2021, the company received IN 57,144 lakhs from the
exercise of share options and IN 71,370 lakhs from the net proceeds from issuance of
equity shares to non-controlling interests. In 2022, there were no proceeds from
issuance of shares mentioned, which may indicate that the company was not issuing
shares to raise capital.
• Thirdly, we can see that the company has been repaying its borrowings and lease
liabilities over the three years. In 2020, the company repaid IN 47,740 lakhs of
borrowings and INR 117,140 lakhs of lease liabilities. In 2021, the company repaid IN
18,263 lakhs of borrowings and INR 41,517 lakhs of lease liabilities. In 2022, the
company repaid INR 26874 lakhs of short-term borrowings and IN 130,717 lakhs of
borrowings.
• The comparison of the three datasets of financing activities shows a decreasing trend in
net cash generated from financing activities and variation in the sources and uses of
funds. The company appears to have been repaying its borrowings and lease liabilities
over the three years, and there has been a decrease in the net proceeds from issuance of
shares. These trends may indicate that the company is focusing on deleveraging its
balance sheet and reducing its reliance on external funding.
References

https://trendlyne.com/fundamentals/documents-annual
reports/187/BHARTIARTL/bharti-airtel-ltd/
https://www.airtel.in/about-bharti/equity/results
https://www.moneycontrol.com/financials/bhartiairtel/balance-sheetVI/BA08
https://www.airtel.in/about-bharti/about-bharti-airtel