A

Research Project

On
“A Study on factors determining the dividend payout of
selected companies in telecommunication sector i.e. Airtel,
Vodafone Idea Limited And Reliance Jio for last five years”
Submitted to:

Kurukshetra University, Kurukshetra

In the partial fulfillment of the Degree of Master of Business Administration
(Session 2018-20)

Submitted To: Submitted by:

Kurukshetra University Digvijay Partap Singh
Kurukshetra Univ. Roll No-1801

SETH JAI PARKASH MUKAND LAL INSTITUTE

OF ENGINEERING AND TECHNOLOGY
(Approved by AICTE, Affiliated to Kurukshetra University, Kurukshetra)

1
 DECLARATION

I, Digvijay Partap Singh, MBA (Semester IV) of the Seth Jai Parkash
Mukand Lal Institute of Engineering And Technology, hereby declared that the
research Project entitled ―A Study on factors determining the dividend payout of
selected companies in telecommunication sector i.e. Airtel, Vodafone Idea
Limited, & Reliance JIO for last five years” prepared by me and submitted in
partial fulfillment of the requirement for the degree of Master of Business
Administration from Kurukshetra University.

This work done by me and the information provided in the study is authentic to the
best of any knowledge. This study has not been submitted to any other instruction or
university for the award of any other degree.

(Digvijay Partap Singh)

2
 SETH JAI PARKASH MUKAND LAL INSTITUTE OF
ENGINEERING & TECHNOLOGY
A SELF FINANCED ISO 9001:2008 CERTIFIED INSTITUTE

(APPROVED BY AICTE& AFFILIATED TO KURUKSHETRA UNIVERSITY,

KURUKSHETRA)

(CHHOTA BAANS), RADAUR – 135133 (YAMUNANAGAR)

// TO WHOM SO EVER IT MAY CONCERN//

This is to certify that Digvijay Partap Singh S/o Mr. bearing

Roll No. ………………….. University Registration No. and class Roll No.
2017039 a bonafide student of MBA (4th semester), has completed his work on
Research Project (CP-402) entitled ―A Comparative Study of Customer
Satisfaction In Amul And Mother Dairy” under my supervision.
His work is original, satisfactory and fit for the purpose of further evaluation towards
the partial fulfillment for the award to the degree of Master‘s Business
Administration.

Dr. Vandana Ms. Anjum Aggarwal

Head (Assistant Professor)
Department of Management Department of Management

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 ACKNOWLEGEMENT

With immense pleasure I acknowledgement my gratitude to all persons whose

guidance have helped me in carrying out this project work.

I take this opportunity to express my profound sense of sincere and deep gratitude to
Ms. Anjum Aggarwal my mentor his constant supervision and above all
extraordinary encouragement during the entire course of the project.

It is my proud privilege to express my profound gratitude to the Head of Department

Dr. Vandana(H.O.D.) and the entire faculty of department, Seth Jai Prakash Mukand
Lal Institute of Engineering And Technology. The Knowledge and values inculcated
have proved to be of immense help at very start of my career.

I would like to express my gratitude to all my friends for their invaluable support and
co-operation during the course of the project.

Last but not the least I would express my gratitude to all the members of JMIT from
whom I got all the necessary help whenever required.

(Digvijay Partap Singh)

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 CONTENTS

Sr. No. Particulars Page No.

Declaration I
Certificate II
Acknowledgement III
INTRODUCTION 1-43
Chapter – 1 1.1 Introduction the Industry
1.2 Introduction to the Company
1.3 Introduction to the Topic

Chapter – 2 Literature Review 44-48

Chapter – 3 Research Methodology 49-59

3.1 Objectives
3.2 Research Design
3.3 Data Source
3.4 Limitations of Study

Chapter – 4 Data analysis and Interpretation 60-75

Chapter – 5 5.1 Findings of Study 76-80

5.2 Suggestions
5.3 Conclusion

Chapter – 6 Annexure 81-89

6.1 Bibliography
6.2 Questioners

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INDUSTRY PROFILE

6
 INDUSTRY PROFILE
Introduction

The telecom services have been recognized the world-over as an important tool for
socio-economic development for a nation. It is one of the prime support services
needed for rapid growth and modernization of various sectors of the economy.

Indian telecommunication sector has undergone a major process of transformation

through significant policy reforms, particularly beginning with the announcement of
NTP 1994 and was subsequently re-emphasized and carried forward under NTP 1999.

Driven by various policy initiatives, the Indian telecom sector witnessed a complete
transformation in the last decade. It has achieved a phenomenal growth during the last
few years and is poised to take a big leap in the future also.

Status of Telecom Sector

The Indian Telecommunications network with 621 million connections (as on March
2010) is the third largest in the world. The sector is growing at a speed of 45% during
the recent years. This rapid growth is possible due to various proactive and positive
decisions of the Government and contribution of both by the public and the private
sectors.

The rapid strides in the telecom sector have been facilitated by liberal policies of the
Government that provides easy market access for telecom equipment and a fair
regulatory framework for offering telecom services to the Indian consumers at
affordable prices. Presently, all the telecom services have been opened for private
participation. The Government has taken following main initiatives for the growth of
the Telecom Sector:

Liberalization

The process of liberalization in the country began in the right earnest with the
announcement of the New Economic Policy in July 1991. Telecom equipment
manufacturing was delicensed in 1991 and value added services were declared open
to the private sector in 1992, following which radio paging, cellular mobile and other

7
value added services were opened gradually to the private sector. This has resulted in
large number of manufacturing units been set up in the country.

As a result most of the equipment used in telecom area is being manufactured within
the country. A major breakthrough was the clear enunciation of the government‘s
intention of liberalizing the telecom sector in the National Telecom Policy resolution
of 13th May 1994.

National Telecom Policy 1994

In 1994, the Government announced the National Telecom Policy which defined
certain important objectives, including availability of telephone on demand, provision
of world class services at reasonable prices, improving India‘s competitiveness in
global market and promoting exports, attractive FDI and stimulating domestic
investment, ensuring India‘s emergence as major manufacturing / export base of
telecom equipment and universal availability of basic telecom services to all villages.
It also announced a series of specific targets to be achieved by 1997.

Telecom Regulatory Authority of India (TRAI)

The entry of private service providers brought with it the inevitable need for
independent regulation. The Telecom Regulatory Authority of India (TRAI) was,
thus, established with effect from 20th February 1997 by an Act of Parliament, called
the Telecom Regulatory Authority of India Act, 1997, to regulate telecom services,
including fixation/revision of tariffs for telecom services which were earlier vested in
the Central Government.

TRAI‘s mission is to create and nurture conditions for growth of telecommunications

in the country in manner and at a pace, which will enable India to play a leading role
in emerging global information society. One of the main objectives of TRAI is to
provide a fair and transparent policy environment, which promotes a level playing
field and facilitates fair competition.

In pursuance of above objective TRAI has issued from time to time a large number of
regulations, orders and directives to deal with issues coming before it and provided

8
the required direction to the evolution of Indian telecom market from a Government
owned monopoly to a multi operator multi service open competitive market.

The directions, orders and regulations issued cover a wide range of subjects including
tariff, interconnection and quality of service as well as governance of the Authority.

The TRAI Act was amended by an ordinance, effective from 24 January 2000,
establishing a Telecommunications Dispute Settlement and Appellate Tribunal
(TDSAT) to take over the adjudicatory and disputes functions from TRAI.

TDSAT was set up to adjudicate any dispute between a licensor and a licensee,
between two or more service providers, between a service provider and a group of
consumers, and to hear and dispose of appeals against any direction, decision or order
of TRAI.

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 Telecommunication

Telecommunication is the transmission of signs, signals, messages, words, writings,

images and sounds or information of any nature by wire, radio, optical or
other electromagnetic systems. Telecommunication occurs when the exchange
ofinformation between communication participants includes the use of technology. It
is transmitted either electrically over physical media, such as cables, or
via electromagnetic radiation. Such transmission paths are often divided
intocommunication channels which afford the advantages of multiplexing. Since
the Latin term communicatio is considered the social process of information
exchange, the term telecommunications is often used in its plural form because it
involves many different technologies.

Early means of communicating over a distance included visual signals, such

as beacons, smoke signals, semaphore telegraphs, signal flags, and
optical heliographs. Other examples of pre-modern long-distance communication
included audio messages such as coded drumbeats, lung-blown horns, and loud
whistles. 20th- and 21st-century technologies for long-distance communication
usually involve electrical and electromagnetic technologies, such
as telegraph, telephone, andteleprinter, networks, radio, microwave transmission, fiber
optics, and communications satellites.

A revolution in wireless communication began in the first decade of the 20th century
with the pioneering developments inradio communications by Guglielmo Marconi,
who won the Nobel Prize in Physics in 1909, and other notable pioneering inventors
and developers in the field of electrical and electronic telecommunications. These
included Charles Wheatstoneand Samuel Morse (inventors of
the telegraph), Alexander Graham Bell (inventor of the telephone), Edwin
Armstrong andLee de Forest (inventors of radio), as well as Vladimir K.
Zworykin, John Logie Baird and Philo Farnsworth (some of the inventors
of television).

Etymology

The word telecommunication is a compound of the Greek prefix tele (τηλε),

meaning distant, far off, or afar, and the Latin communicare, meaning to share. Its
modern use is adapted from the French, because its written use was recorded in 1904

10
by the French engineer and novelist Édouard Estaunié.Communication was first used
as an English word in the late 14th century. It comes from Old French comunicacion
(14c., Modern French communication), from Latin communicationem (nominative
communicatio), noun of action from past participle stem of communicare "to share,
divide out; communicate, impart, inform; join, unite, participate in", literally "to make
common", from communis".

History

Beacons and pigeons

Homing pigeons have occasionally been used throughout history by different

cultures. Pigeon post had Persian roots, and was later used by the Romans to aid their
military. Frontinus said that Julius Caesar used pigeons as messengers in his conquest
of Gaul.The Greeks also conveyed the names of the victors at the Olympic Games to
various cities using homing pigeons. In the early 19th century, the Dutch government
used the system in Java and Sumatra. And in 1849, Paul Julius Reuter started a pigeon
service to fly stock prices between Aachen and Brussels, a service that operated for a
year until the gap in the telegraph link was closed.

In the Middle Ages, chains of beacons were commonly used on hilltops as a means of
relaying a signal. Beacon chains suffered the drawback that they could only pass a
single bit of information, so the meaning of the message such as "the enemy has been
sighted" had to be agreed upon in advance. One notable instance of their use was
during the Spanish Armada, when a beacon chain relayed a signal from Plymouth to
London.

In 1792, Claude Chappe, a French engineer, built the first fixed

visual telegraphy system (or semaphore line) between Lille and Paris. However
semaphore suffered from the need for skilled operators and expensive towers at
intervals of ten to thirty kilometres (six to nineteen miles). As a result of competition
from the electrical telegraph, the last commercial line was abandoned in 1880.

Telegraph and telephon

On 25 July 1837 the first commercial electrical telegraph was demonstrated by

English inventor Sir William Fothergill Cooke, and English scientist Sir Charles

11
Wheatstone. Both inventors viewed their device as "an improvement to the [existing]
electromagnetic telegraph" not as a new device.

Samuel Morse independently developed a version of the electrical telegraph that he

unsuccessfully demonstrated on 2 September 1837. His code was an important
advance over Wheatstone's signaling method. The first transatlantic telegraph
cable was successfully completed on 27 July 1866, allowing transatlantic
telecommunication for the first time.

The conventional telephone was invented independently by Alexander Bell and Elisha
Gray in 1876. Antonio Meucci invented the first device that allowed the electrical
transmission of voice over a line in 1849. However Meucci's device was of little
practical value because it relied upon the electrophonic effect and thus required users
to place the receiver in their mouth to "hear" what was being said. The first
commercial telephone services were set-up in 1878 and 1879 on both sides of the
Atlantic in the cities of New Haven and London.

Radio and television

Starting in 1894, Italian inventor Guglielmo Marconi began developing a wireless

communication using the then newly discovered phenomenon of radio waves,
showing by 1901 that they could be transmitted across the Atlantic Ocean. This was
the start of wireless telegraphy by radio. Voice and music were demonstrated in 1900
and 1906, but had little early success.[citation needed]
World War I accelerated the
development of radio for military communications. After the war, commercial
radio AM broadcasting began in the 1920s and became an important mass medium for
entertainment and news. World War II again accelerated development of radio for the
wartime purposes of aircraft and land communication, radio navigation and
radar. Development of stereo FM broadcasting of radio took place from the 1930s on-
wards in the United States and displaced AM as the dominant commercial standard by
the 1960s, and by the 1970s in the United Kingdom.

On 25 March 1925, John Logie Baird was able to demonstrate the transmission of
moving pictures at the London department store Selfridges. Baird's device relied upon
the Nipkow disk and thus became known as the mechanical television. It formed the
basis of experimental broadcasts done by the British Broadcasting

12
Corporation beginning 30 September 1929. However, for most of the twentieth
century televisions depended upon the cathode ray tube invented by Karl Braun. The
first version of such a television to show promise was produced by Philo
Farnsworth and demonstrated to his family on 7 September 1927. After World War II,
the experiments in television that had been interrupted were resumed, and it also
became an important home entertainment broadcast medium.

Computers and the Internet

On 11 September 1940, George Stibitz transmitted problems for his Complex Number
Calculator in New York using a teletype, and received the computed results back
at Dartmouth College in New Hampshire. This configuration of a centralized
computer (mainframe) with remote dumb terminals remained popular well into the
1970s. However, already in the 1960s, researchers started to investigate packet
switching, a technology that sends a message in portions to its
destinationasynchronously without passing it through a centralized mainframe. A
four-node network emerged on 5 December 1969, constituting the beginnings of
theARPANET, which by 1981 had grown to 213 nodes. ARPANET eventually
merged with other networks to form the Internet. While Internet development was a
focus of the Internet Engineering Task Force (IETF) who published a series
of Request for Comment documents, other networking advancement occurred
in industrial laboratories, such as the local area network (LAN) developments
of Ethernet (1983) and the token ring protocol (1984)

Key concepts

Modern telecommunication is founded on a series of key concepts that experienced

progressive development and refinement in a period of well over a century.

Basic elements

Telecommunication technologies may primarily be divided into wired and wireless

methods. Overall though, a basic telecommunication system consists of three main
parts that are always present in some form or another:

A transmitter that takes information and converts it to a signal.

A transmission medium, also called the physical channel that carries the signal.
An example of this is the "free space channel".

13
 A receiver that takes the signal from the channel and converts it back into usable
information for the recipient.

For example, in a radio broadcasting station the station's large power amplifier is the
transmitter; and the broadcasting antenna is the interface between the power amplifier
and the "free space channel". The free space channel is the transmission medium; and
the receiver's antenna is the interface between the free space channel and the receiver.
Next, the radio receiver is the destination of the radio signal, and this is where it is
converted from electricity to sound for people to listen to.

Sometimes, telecommunication systems are "duplex" (two-way systems) with a single

box of electronics working as both the transmitter and a receiver, or atransceiver. For
example, a cellular telephone is a transceiver. The transmission electronics and the
receiver electronics within a transceiver are actually quite independent of each other.
This can be readily explained by the fact that radio transmitters contain power
amplifiers that operate with electrical powers measured inwatts or kilowatts, but radio
receivers deal with radio powers that are measured in the microwatts or nanowatts.
Hence, transceivers have to be carefully designed and built to isolate their high-power
circuitry and their low-power circuitry from each other, as to not cause interference.

Telecommunication over fixed lines is called point-to-point communication because it

is between one transmitter and one receiver. Telecommunication through radio
broadcasts is called broadcast communication because it is between one powerful
transmitter and numerous low-power but sensitive radio receivers.

Telecommunications in which multiple transmitters and multiple receivers have been

designed to cooperate and to share the same physical channel are calledmultiplex
systems. The sharing of physical channels using multiplexing often gives very large
reductions in costs. Multiplexed systems are laid out in telecommunication networks,
and the multiplexed signals are switched at nodes through to the correct destination
terminal receiver.

Analog versus digital communications

Communications signals can be sent either by analog signals or digital signals. There
are analog communication systems and digital communication systems. For an analog
signal, the signal is varied continuously with respect to the information. In a digital
signal, the information is encoded as a set of discrete values (for example, a set of

14
ones and zeros). During the propagation and reception, the information contained in
analog signals will inevitably be degraded by undesirable physical noise. (The output
of a transmitter is noise-free for all practical purposes.) Commonly, the noise in a
communication system can be expressed as adding or subtracting from the desirable
signal in a completely random way. This form of noise is called additive noise, with
the understanding that the noise can be negative or positive at different instants of
time. Noise that is not additive noise is a much more difficult situation to describe or
analyze, and these other kinds of noise will be omitted here.

On the other hand, unless the additive noise disturbance exceeds a certain threshold,
the information contained in digital signals will remain intact. Their resistance to
noise represents a key advantage of digital signals over analog signals.

Telecommunication networks

A telecommunications network is a collection of transmitters, receivers,

and communications channels that send messages to one another. Some digital
communications networks contain one or more routers that work together to transmit
information to the correct user. An analog communications network consists of one or
more switches that establish a connection between two or more users. For both types
of network, repeaters may be necessary to amplify or recreate the signal when it is
being transmitted over long distances. This is to combat attenuation that can render
the signal indistinguishable from the noise. Another advantage of digital systems over
analog is that their output is easier to store in memory, i.e. two voltage states (high
and low) are easier to store than a continuous range of states.

Communication channels

The term "channel" has two different meanings. In one meaning, a channel is the
physical medium that carries a signal between the transmitter and the receiver.
Examples of this include the atmosphere for sound communications, glass optical
fibers for some kinds of optical communications, coaxial cables for communications
by way of the voltages and electric currents in them, and free space for
communications using visible light, infrared waves, ultraviolet light, and radio waves.
Coaxial cable types are classified by RG type or "radio guide", terminology derived
from World War II. The various RG designations are used to classify the specific
signal transmission applications. This last channel is called the "free space channel".

15
The sending of radio waves from one place to another has nothing to do with the
presence or absence of an atmosphere between the two. Radio waves travel through a
perfect vacuum just as easily as they travel through air, fog, clouds, or any other kind
of gas.

The other meaning of the term "channel" in telecommunications is seen in the

phrase communications channel, which is a subdivision of a transmission medium so
that it can be used to send multiple streams of information simultaneously. For
example, one radio station can broadcast radio waves into free space at frequencies in
the neighborhood of 94.5 MHz (megahertz) while another radio station can
simultaneously broadcast radio waves at frequencies in the neighborhood of
96.1 MHz. Each radio station would transmit radio waves over a
frequency bandwidth of about 180 kHz (kilohertz), centered at frequencies such as the
above, which are called the "carrier frequencies". Each station in this example is
separated from its adjacent stations by 200 kHz, and the difference between 200 kHz
and 180 kHz (20 kHz) is an engineering allowance for the imperfections in the
communication system.

In the example above, the "free space channel" has been divided into communications
channels according to frequencies, and each channel is assigned a separate frequency
bandwidth in which to broadcast radio waves. This system of dividing the medium
into channels according to frequency is called "frequency-division multiplexing".
Another term for the same concept is "wavelength-division multiplexing", which is
more commonly used in optical communications when multiple transmitters share the
same physical medium.

Another way of dividing a communications medium into channels is to allocate each

sender a recurring segment of time (a "time slot", for example, 20 millisecondsout of
each second), and to allow each sender to send messages only within its own time
slot. This method of dividing the medium into communication channels is called
"time-division multiplexing" (TDM), and is used in optical fiber communication.
Some radio communication systems use TDM within an allocated FDM channel.
Hence, these systems use a hybrid of TDM and FDM.

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Modulation

The shaping of a signal to convey information is known as modulation. Modulation

can be used to represent a digital message as an analog waveform. This is commonly
called "keying"—a term derived from the older use of Morse Code in
telecommunications—and several keying techniques exist (these include phase-shift
keying, frequency-shift keying, and amplitude-shift keying). The "Bluetooth" system,
for example, uses phase-shift keying to exchange information between various
devices. In addition, there are combinations of phase-shift keying and amplitude-shift
keying which is called (in the jargon of the field) "quadrature amplitude modulation"
(QAM) that are used in high-capacity digital radio communication systems.

Modulation can also be used to transmit the information of low-frequency analog

signals at higher frequencies. This is helpful because low-frequency analog signals
cannot be effectively transmitted over free space. Hence the information from a low-
frequency analog signal must be impressed into a higher-frequency signal (known as
the "carrier wave") before transmission. There are several different modulation
schemes available to achieve this [two of the most basic being amplitude
modulation (AM) and frequency modulation (FM)]. An example of this process is a
disc jockey's voice being impressed into a 96 MHz carrier wave using frequency
modulation (the voice would then be received on a radio as the channel "96 FM"). In
addition, modulation has the advantage that it may use frequency division
multiplexing (FDM).

Society

Telecommunication has a significant social, cultural and economic impact on modern

society. In 2008, estimates placed the telecommunication industry's revenue at
$4.7 trillion or just under 3 percent of the gross world product (official exchange
rate). Several following sections discuss the impact of telecommunication on society.

Economic impact

Microeconomics

On the microeconomic scale, companies have used telecommunications to help build

global business empires. This is self-evident in the case of online
retailerAmazon.com but, according to academic Edward Lenert, even the

17
conventional retailer Walmart has benefited from better telecommunication
infrastructure compared to its competitors. In cities throughout the world, home
owners use their telephones to order and arrange a variety of home services ranging
from pizza deliveries to electricians. Even relatively poor communities have been
noted to use telecommunication to their advantage. In Bangladesh's Narshingdi
district, isolated villagers use cellular phones to speak directly to wholesalers and
arrange a better price for their goods. In Côte d'Ivoire, coffee growers share mobile
phones to follow hourly variations in coffee prices and sell at the best price.

Macroeconomics

On the macroeconomic scale, Lars-Hendrik Röller and Leonard Waverman suggested

a causal link between good telecommunication infrastructure and economic
growth. Few dispute the existence of a correlation although some argue it is wrong to
view the relationship as causal.

Because of the economic benefits of good telecommunication infrastructure, there is

increasing worry about the inequitable access to telecommunication services amongst
various countries of the world—this is known as the digital divide. A 2003 survey by
the International Telecommunication Union (ITU) revealed that roughly a third of
countries have fewer than one mobile subscription for every 20 people and one-third
of countries have fewer than one land-line telephone subscription for every 20 people.
In terms of Internet access, roughly half of all countries have fewer than one out of 20
people with Internet access. From this information, as well as educational data, the
ITU was able to compile an index that measures the overall ability of citizens to
access and use information and communication technologies.Using this measure,
Sweden, Denmark and Iceland received the highest ranking while the African
countries Nigeria, Burkina Faso and Mali received the lowest.

Social impact

Telecommunication has played a significant role in social relationships. Nevertheless,

devices like the telephone system were originally advertised with an emphasis on the
practical dimensions of the device (such as the ability to conduct business or order
home services) as opposed to the social dimensions. It was not until the late 1920s and
1930s that the social dimensions of the device became a prominent theme in
telephone advertisements. New promotions started appealing to consumers' emotions,

18
stressing the importance of social conversations and staying connected to family and
friends.

Since then the role that telecommunications has played in social relations has become
increasingly important. In recent years, the popularity of social networking sites has
increased dramatically. These sites allow users to communicate with each other as
well as post photographs, events and profiles for others to see. The profiles can list a
person's age, interests, sexual preference and relationship status. In this way, these
sites can play important role in everything from organising social engagements
to courtship.

Prior to social networking sites, technologies like short message service (SMS) and
the telephone also had a significant impact on social interactions. In 2000, market
research group Ipsos MORI reported that 81% of 15- to 24-year-old SMS users in the
United Kingdom had used the service to coordinate social arrangements and 42% to
flirt.

Government

Many countries have enacted legislation which conforms to the International

Telecommunication Regulations established by the International Telecommunication
Union (ITU), which is the "leading UN agency for information and communication
technology issues". In 1947, at the Atlantic City Conference, the ITU decided to
"afford international protection to all frequencies registered in a new international
frequency list and used in conformity with the Radio Regulation". According to the
ITU's Radio Regulations adopted in Atlantic City, all frequencies referenced in
the International Frequency Registration Board, examined by the board and registered
on the International Frequency List "shall have the right to international protection
from harmful interference".

From a global perspective, there have been political debates and legislation regarding
the management of telecommunication and broadcasting. The history of
broadcasting discusses some debates in relation to balancing conventional
communication such as printing and telecommunication such as radio
broadcasting.The onset of World War II brought on the first explosion of international
broadcasting propaganda. Countries, their governments, insurgents, terrorists, and
militiamen have all used telecommunication and broadcasting techniques to

19
promote propaganda. Patriotic propaganda for political movements and colonization
started the mid-1930s. In 1936, the BBC broadcast propaganda to the Arab World to
partly counter similar broadcasts from Italy, which also had colonial interests in North
Africa.

Modern insurgents, such as those in the latest Iraq War, often use intimidating
telephone calls, SMSs and the distribution of sophisticated videos of an attack on
coalition troops within hours of the operation. "The Sunni insurgents even have their
own television station, Al-Zawraa, which while banned by the Iraqi government, still
broadcasts from Erbil, Iraqi Kurdistan, even as coalition pressure has forced it to
switch satellite hosts several times."

On 10 November 2014, President Obama recommended the Federal Communications

Commission reclassify broadband Internet service as a telecommunicationsservice to
preserve net neutrality.

20
COMPANY PROFILE

21
 COMPANY PROFILE
BHARTI AIRTEL
Bharti Airtel Limited also known as Airtel is an Indian global telecommunications
services company based in Delhi, India. It operates in 20 countries across South
Asia and Africa. Airtel provides GSM, 3G, 4G LTE mobile services, fixed line
broadband and voice services depending upon the country of operation. Airtel had
also rolled out its VoLTEtechnology across all Indian telecom circles except Jammu
and Kashmir and Andaman and is likely to launch in these circles soon. It is
the second largest mobile network operator in India and the third largest mobile
network operator in the world with over 438.04 million subscribers. Airtel was named
India's second most valuable brand in the first ever Brandz ranking by Millward
Brown and WPP plc.

Airtel is credited with pioneering the business strategy of outsourcing all of its
business operations except marketing, sales and finance and building the 'minutes
factory' model of low cost and high volumes. The strategy has since been adopted by
several operators. Airtel's equipment is provided and maintained by Ericsson, Huawei,
and Nokia Networks whereas IT support is provided by IBM. The transmission
towers are maintained by subsidiaries and joint venture companies of Bharti
including Bharti Infratel and Indus Towers in India. Ericsson agreed for the first time
to be paid by the minute for installation and maintenance of their equipment rather
than being paid up front, which allowed Airtel to provide low call rates
of ₹1(1.4¢ US)/minute.

History

In 1984, Sunil Mittal started assembling push-button phones in India, which he earlier
used to import from a Taiwan company, Kingtel, replacing the old fashioned,
bulky rotary phones that were in use in the country then. Bharti Telecom Limited
(BTL) was incorporated and entered into a technical tie up with Siemens AG of
Germany for manufacture of electronic push button phones. By the early 1990s,
Bharti was making fax machines, cordless phones and other telecom gear. He named
his first push-button phones as 'Mitbrau'.

22
In 1992, he successfully bid for one of the four mobile phone network licences
auctioned in India. One of the conditions for the Delhi cellular license was that the
bidder have some experience as a telecom operator. So, Mittal clinched a deal with
the French telecom group Vivendi. He was one of the first Indian entrepreneurs to
identify the mobile telecom business as a major growth area. His plans were finally
approved by the Government in 1994 and he launched services in Delhi in 1995,
when Bharti Cellular Limited (BCL) was formed to offer cellular services under the
brand name AirTel. Within a few years Bharti became the first telecom company to
cross the 2 million mobile subscriber mark. Bharti also brought down the STD/ISD
cellular rates in India under brand name 'Indiaone'.

In 1999, Bharti Enterprises acquired control of JT Holdings, and extended cellular

operations to Karnataka and Andhra Pradesh. In 2000, Bharti acquired control of
Skycell Communications, in Chennai. In 2001, the company acquired control of Spice
Cell in Calcutta. Bharti Enterprises went public in 2002, and the company was listed
on Bombay Stock Exchange and National Stock Exchange of India. In 2003, the
cellular phone operations were re-branded under the single Airtel brand. In 2004,
Bharti acquired control of Hexacom and entered Rajasthan. In 2005, Bharti extended
its network to Andaman and Nicobar. This expansion allowed it to offer voice
services all across India.

Airtel launched "Hello Tunes", a caller ring back tone service (CRBT), in July 2004
becoming to the first operator in India to do so. The Airtel theme song, composed by
A.R. Rahman, was the most popular tune in that year.

In May 2008, it emerged that Airtel was exploring the possibility of buying the MTN
Group, a South Africa-based telecommunications company with coverage in 21
countries in Africa and the Middle East. The Financial Times reported that Bharti was
considering offering US$45 billion for a 100% stake in MTN, which would be the
largest overseas acquisition ever by an Indian firm. However, both sides emphasise
the tentative nature of the talks, while The Economist magazine noted, "If anything,
Bharti would be marrying up," as MTN has more subscribers, higher revenues and
broader geographic coverage. However, the talks fell apart as MTN Group tried to
reverse the negotiations by making Bharti almost a subsidiary of the new company. In
May 2009, Bharti Airtel again confirmed that it was in talks with MTN and the
companies agreed to discuss the potential transaction exclusively by 31 July 2009.

23
Talks eventually ended without agreement, some sources stating that this was due to
opposition from the South African government.

In 2009, Bharti negotiated for its strategic partner Alcatel-Lucent to manage the
network infrastructure for the fixed line business. Later, Bharti Airtel awarded the
three-year contract to Alcatel-Lucent for setting up an Internet Protocol access
network across the country. This would help consumers access internet at faster speed
and high quality internet browsing on mobile handsets.

In 2009, Airtel launched its first international mobile network in Sri Lanka. In June
2010, Bhartil acquired the African business of Zain Telecom for $10.7 billion making
it the largest ever acquisition by an Indian telecom firm. In 2012, Bharti tied up
with Wal-Mart, the US retail giant, to start a number of retail stores across India. In
2014, Bharti planned to acquire Loop Mobile for ₹7 billion (US$97 million), but the
deal was called off later.

Bharti Airtel Limited ("Airtel"), the world's third largest mobile operator with
operations in 20 countries across Asia and Africa, said that its Treasury division has
been adjudged as a highly commended winner of the Top Treasury Team (Asia)
Awards at the Adam Smith Asia Awards 2015.

Airtel India

Airtel India is the second largest provider after Vodafone Idea Ltd of mobile
telephony and second largest provider of fixed telephony in India, and is also a
provider of broadband and subscription television services. It offers its telecom
services under the airtel brand, and is headed by Sunil Bharti Mittal.

Telemedia

Under the Telemedia segment, Airtel provides broadband internet access through
DSL, internet leased lines and MPLS (multiprotocol label switching) solutions, as
well as IPTV and fixed line telephone services. Until 18 September 2004, Bharti
provided fixed line telephony and broadband services under the Touchtel brand.
Bharti now provides all telecom services including fixed line services under the
common brand airtel. As of September 2012, Airtel provides Telemedia services to
3.3 million customers in 87 cities. As on 30 November 2012, Airtel had 1.39 million
broadband subscribers.

24
Airtel Broadband provides broadband and IPTV services. Airtel provides both capped
as well as unlimited download plans. However, Airtel's unlimited plans are subject to
free usage policy (FUP), which reduces speed after the customer crosses a certain data
usage limit. In most of the plans, Airtel provides only 512kbit/s beyond FUP, which is
lower than the TRAI specified limit of half the subscriber's original speed. The
maximum speed available for home users under the new V-Fiber program is
100MBit/s and with DSL is 16Mbit/s.

In May 2012, Airtel Broadband and some other Indian ISPs temporarily blocked file
sharing websites such as vimeo.com, megavideo.com, and thepiratebay.se, without
giving any legal information to customers. Airtel will be launching its Voice over
LTE calling service in Mumbai and Kolkata.

In June 2011 the Economic Times reported that Telemedia Business was merged with
Mobile, DTH and Business in three separate parts respectively.

Digital television

The Digital television business provides Direct-to-Home (DTH) TV services across

India under the brand name Airtel digital TV. It started services on 9 October 2008
and had about 7.9 million customers at the end of December 2012.

Mobile data service

Services under mobile data include BlackBerry services; a web-enabled mobile email
solution working on 'push technology'; a USB modem that helps in getting instant
access to Internet and corporate applications; Airtel Data Card, which enables
accessing the internet anytime; Easy Mail, a platform that provides access to
personal/corporate e-mails independent of handset operating system; and application
services that shorten the queues at the billing section, off-load the pressure on the
billing staff and bring convenience to the user.

Business

Airtel Business consists largely of six products: cloud and managed services, digital
signage, NLD/ILD connectivity (VSAT/ MPLS/ IPLC and Ethernet products), Wi-Fi
dongles,voice solutions (like toll free numbers, TracMate, and automated media
reading) and conferencing solutions (VoIP, audio, video, and web conferencing)

25
serving Industry verticals like BFSI, IT/ITeS, manufacturing, hospitality and
government.

Airtel Business, the B2B arm of Bharti Airtel, has rolled out a first of its kind
dedicated digital platform to serve the growing connectivity, communication and
collaboration requirements of emerging businesses, including SMEs and startups. The
digital platform will offer solutions to emerging enterprises to enable ease of business
and faster time to market.

Android-based tablet

Beetel Teletech Ltd., a unit of Bharti Enterprises Ltd., on 18 August 2011, launched
a ₹9,999(US$140) 7-inch tablet in India based on Google Inc.'s Android operating
system. The offering is intended to capitalise on the expected demand for cheap
computing devices in the world's fastest-growing and second-largest mobile phone
market.

26
 Vodafone Idea Limited
Vodafone Idea Limited is India's largest telecom operator with its headquarter based
in Mumbai, Maharashtra. Vodafone Idea is a pan-India integrated GSM operator
offering 2G, 3G and 4G mobile services under two brands
named Vodafone and Idea. Vodafone Idea also provides services including Mobile
payments, IoT, advanced enterprise offerings and entertainment, accessible via both
digital channels as well as on-ground touch points, centers across the country. The
company's vision is 'to create world class digital experiences to connect and inspire
every Indian to build a better tomorrow'. As of December 2018, Vodafone Idea has
35.61% market share in India with 418.745 million subscribers, making it the largest
mobile telecommunications network in India and second largest mobile
telecommunications network in the world. Vodafone Idea has a broadband network of
340,000 sites, distribution reach of 1.7 million retail outlets.

On 31 August 2018, Vodafone India merged with Idea Cellular, and was renamed as
Vodafone Idea Limited. However, the merged entity continues using both the Idea
and Vodafone brand. Currently, the Vodafone Group holds a 45.1% stake in the
combined entity, the Aditya Birla Group holds 26% and the remaining shares will be
held by the public.Kumar Mangalam Birla heads the merged company as the
Chairman, with Balesh Sharma as the CEO.

History

On 20 March 2017, Idea and Vodafone India announced that their respective boards
had approved a merger of the two companies. The merger got approval from
Department of Telecommunications in July 2018. On August 30, 2018,National
Company Law Tribunal gave the final nod to the Vodafone-Idea merger The merger
was completed on 31 August 2018, and the newly merged entity is named Vodafone
Idea Ltd. The merger created the largest telecom company in India by subscribers and
by revenue. Under the terms of the deal, the Vodafone Group holds a 45.2% stake in
the combined entity, the Aditya Birla Group holds 26% and the remaining shares will
be held by the public.

Idea previously bought Spice Communications Ltd, operating as Spice Telecom, for
over Rs 2,700 crore.

27
Operations

Vodafone Idea Limited competes with other major mobile operators

including Airtel, BSNL, RELIANCE JIO and Reliance Jio. VODAFONE IDEA
LIMITED DoCoMo – with whom Vodafone Idea Limited competed is now in the
process of Merging their businesses with Airtel,. Vodafone Idea Limited has gone far
ahead of the rest of these competitors with a Revenue Market Share of over 32.2%.

On 19 May 2010, in the 3G spectrum auction Vodafone Idea Limited paid ₹57.68
billion (US$800 million) for spectrum in 11 circles. Vodafone Idea Limited launched
its first 3G services in 2011.

As of September 2018, Vodafone Idea Limited offers 4G LTE services on its own
spectrum in all the telecom circles.

Radio frequency summary

Vodafone Idea Limited owns spectrum in 900 MHz, 1800 MHz, 2100 MHz,
2300 MHz and 2500 MHz bands across the country.

Note: the above table contains Vodafone-Idea (merged entity) radio frequency details
because they share their networks with each other via ICR (intra-circle roaming
agreement) in some circles. For example, Idea has started its customers in Delhi
access 4G services in May 2018 via the Vodafone network.

Network Integration

Vodafone Idea announced the consolidation of its radio network integration in 8

telecom circles within five months.The integration of radio network will enable both
Vodafone and Idea customers to enjoy a unified network experience on 2G, 3G and
4G in 8 telecom circles such as West Bengal, Haryana, HP, Assam, North East, AP &
Telangana (excluding Hyderabad), J&K and MP & Chhattisgarh.

28
Financial Results

Q3 FY19: Vodafone Idea posted a consolidated loss of Rs 5,005.7 crore for the
quarter ending December 2018. The teleco posted a loss of Rs 4,973.80 crore in the
sequential quarter ended September 30, the first quarterly earnings reported by the
combined entity. The total income was reported at Rs 11,982.8 core during the same
quarter. The income increased by 52 per cent compared to Rs 7,878.6 crore in the
previous July–September quarter.

29
 RELIANCE JIO

Reliance Jio Infocomm Limited, Jio, is an Indian mobile network operator. Owned
by Reliance Industries and headquartered in Mumbai, Maharashtra, it operates a
national LTE network with coverage across all 22 telecom circles. Jio does not
offer 2G or 3G service, and instead uses voice over LTE to provide voice service on
its network.

Jio soft launched on 27 December 2015 (the eve of what would have been the 83rd
birthday of Reliance Industries founder Dhirubhai Ambani), with a beta for partners
and employees, and became publicly available on 5 September 2016. As of 31
January 2019, it is the third largest mobile network operator in India and the nineth
largest mobile network operator in the world with over 289.44 million subscribers.

On 5 July 2018, fixed line broadband service named Gigafiber, was launched by the
Reliance Industries Limited's chairman Mukesh Ambani, during the company's
Annual General Meeting.

History

The company was registered in Ambawadi, Ahmedabad (Gujarat) on 15 February

2007 as Reliance Jio Infocomm Limited. In June 2010, Reliance Industries (RIL)
bought a 95% stake in Infotel Broadband Services Limited (IBSL) for ₹4,800
crore(US$670 million). Although unlisted, IBSL was the only company that won
broadband spectrum in all 22 circles in India in the 4G auction that took place earlier
that year. Later continuing as RIL's telecom subsidiary, Infotel Broadband Services
Limited was renamed as Reliance Jio Infocomm Limited (RJIL) in January 2013.

In June 2015, Jio announced that it would start its operations all over the country by
the end of 2015. However, four months later in October, the company's spokesmen
sent out a press release stating that the launch was postponed to the first quarter of the
financial year 2016–2017.

Later, in July, a PIL filed in the Supreme Court by an NGO called the Centre for
Public Interest Litigation, through Prashant Bhushan, challenged the grant of a pan-
India licence to Jio by the Government of India. The PIL also alleged that Jio was
allowed to provide voice telephony along with its 4G data service, by paying an
additional fee of just ₹165.8 crore(US$23 million) which was arbitrary and

30
unreasonable, and contributed to a loss of ₹2,284.2 crore (US$320 million) to the
exchequer.

The Indian Department of Telecommunications (DoT), however, refuted all of CAG's

claims. In its statement, DoT explained that the rules for 3G and BWA spectrum
didn't restrict BWA winners from providing voice telephony. As a result, the PIL was
revoked, and the accusations were dismissed.

Beta launch

The 4G services were launched internally to Jio's partners, its staff and their families
on 27 December 2015. Bollywood actor Shah Rukh Khan, who is also the brand
ambassador of Jio, kickstarted the launch event which took place in Reliance
Corporate Park in Navi Mumbai, along with celebrities like musician A R Rahman,
actorsRanbir Kapoor and Javed Jaffrey, and filmmaker Rajkumar Hirani. The closed
event was witnessed by more than 35000 RIL employees some of whom were
virtually connected from around 1000 locations including Dallas in the US.

Commercial launch

The company commercially launched its services on 5 September 2016. Within the
first month, Jio announced that it had acquired 16 million subscribers. This is the
fastest ramp-up by any mobile network operator anywhere in the world. Jio crossed
50 million subscriber mark in 83 days since its launch, subsequently crossing 100
million subscribers on 22 February 2017. By October 2017 it had about 130 million
subscribers.

Alliance

In February 2016 Jio announced a global alliance of Mobile Network Operators which
include:

BT Group
Deutsche Telekom
Millicom
Orange S.A.
Rogers Communications
MTS

31
 Telia Company
Telecom Italia

partnerships

Jio shares spectrum with Reliance Communications. The sharing deal is for 800 MHz
band across seven circles other than the 10 circles for which Jio already owns.

In September 2016, Jio signed a pact with BSNL for intra-circle roaming which
would enable users of the operators to use each other's 4G and 2G spectrum innational
roaming mode.

In February 2017, Jio announced a partnership with Samsung to work on LTE -

Advanced Pro and 5G.

Products and services

JioPhone

On 21 July 2017, Jio introduced its first affordable 4G feature phone, powered
by KaiOS, named as JioPhone. The price announced for it is ₹0 with a security
deposit of ₹1500 which can be withdrawn back by the user by returning the JioPhone
at Jio stores only after three years. This phone was released for beta users on 15
August 2017 and pre-booking for regular users started on 24 August 2017.

JioPhone 2

A second model with a QWERTY keyboard, as well as Facebook, WhatsApp and

YouTube applications, was released in July 2018 for ₹2,999.

4G broadband

The company launched its 4G broadband services throughout India in September

2016. It was slated to release in December 2015 after some reports said that the
company was waiting to receive final permits from the government. Jio offers fourth-
generation (4G) data and voice services, along with peripheral services like instant
messaging and streaming movies and music.

The company has a network of more than 250,000 km of fiber optic cables in the
country, over which it will be partnering with local cable operators to get broader
connectivity for its broadband services. With its multi-service operator (MSO)

32
licence, Jio will also serve as a TV channel distributor and will offer television-on-
demand on its network.

LYF smartphones

In June 2015, Jio entered into an agreement with domestic handset maker Intex to
supply 4G handsets capable of voice over LTE (VoLTE). However, in October 2015,
Jio announced that it would be launching its own mobile handset brand namedLYF.

On 25 January 2016, the company launched its LYF smartphone series starting with
Water 1, through its chain of electronic retail outlets, Reliance Retail. Three more
handset models have been released so far, namely Water 2, Earth 1, and Flame 1.

Jionet WiFi

Prior to its pan-India launch of 4G data and telephony services, Jio has started
providing free Wi-Fi hotspot services in cities throughout India including Surat,
Ahmedabad in Gujarat, and Visakhapatnam in Andhra Pradesh, Indore, Jabalpur,
Dewas and Ujjain in Madhya Pradesh, select locations of Mumbai in Maharashtra,
Kolkata in West Bengal, Lucknow in Uttar Pradesh, Bhubaneswar in Odisha,
Mussoorie in Uttarakhand, Collectorate's Office in Meerut, and at MG Road
in Vijayawadaamong others.

In March 2016, Jio started providing free Wi-Fi internet to spectators at six cricket
stadiums hosting the 2016 ICC World Twenty20matches. Jionet was made available
in Wankhede Stadium (Mumbai), Punjab Cricket Association IS Bindra
Stadium (Mohali),Himachal Pradesh Cricket Association Stadium (Dharamshala),
Chinnaswamy Stadium (Bengaluru), Feroz Shah Kotla (Delhi), andEden
Gardens (Kolkata) in India.

Jio Giga Fiber

Jio launched Jio Giga Fibre on 15 August 2018 which offers high speed broadband,
landline and DTH services at reasonable prices.

Jio Apps

In May 2016, Jio launched a bundle of multimedia apps on Google Play as part of its
upcoming 4G services. While the apps are available to download for everyone, a user

33
will require a Jio SIM card to use them. Additionally, most of the apps are in
the beta phase. Notable apps include:

JioChat - instant messaging app

JioCinema - online HD video library
JioCloud - cloud-based backup tool
JioMags - e-reader for magazines
JioMoney Wallet - online payments/wallet app
JioSaavn (earlier, JioMusic) - for online and offline music streaming in English
and Indian languages
JioSecurity - security app
Jio4GVoice (earlier, JioJoin) - VoLTE phone simulator
MyJio - manage Jio account and digital services associated with it

Affordable 4G phones

Reliance Jio has partnered with Google to manufacture affordable 4G handsets. These
phones will run exclusively on Jio network. The two companies are also working on
developing software for smart-TV services. Both were expected to launch in 2017.

JioFi

Jio has also launched Wi-Fi routers by the name JioFi.

Branding and marketing

On December 24, 2015, Bollywood actor Shah Rukh Khan was appointed as Jio's
brand ambassador.

Pokémon Go

Location-based AR game Pokémon Go was launched in India in December, 2016 in

collaboration with Jio in which hundreds of Jio stores and other Reliance marts and
shopping malls like Reliance Trends and Reliance Digital became Sponsored
PokéStops and Gyms.

Reception of Jio Prime

By July, 12.55 crore Jio customers had opted for Jio Prime. The last date for
registration to Jio Prime membership was 31 March 2017. This was extended until 15

34
April 2017 along with an introduction of a new offer, "Jio Summer Surprise", which
gave customers three months of free services. On 6 April 2017, TRAI advised Jio to
withdraw this offer.

Controversies

Issue with incumbents

In September 2016, the Telecom Regulatory Authority of India (TRAI) summoned Jio
and the country's existing telecom operators like Airtel, Vodafone, and Idea
Cellular to meet and discuss an issue regarding interconnection between the operators.
This was a result after Jio complained to TRAI and Department of Telecom(DoT)
about other operators not honoring their commercial agreements to let Jio use their
network resources. The company further added that the operators are trying to
sabotage its entry into the telecom scene. However, DoT dismissed the request and
directed TRAI to help settle the dispute amicably. Moreover, the Cellular Operators
Association of India (COAI) requested TRAI to include all the operators in the
discussion instead of the three.

The incumbent operators had previously approached the country's PMO to reiterate
their stance they "are in no way obliged or in any position to entertain Jio's requests
for interconnection points as they do not have either the network or the financial
resources to terminate the latter's humongous volumes of potentially asymmetric
voice traffic." Responding to this, Mukesh Ambani, owner of Jio, said, "All operators
have publicly said last week that they will provide this (interconnect and MNP). So,
we are waiting. These are all great companies. They have their own reputations to
protect. I am confident they won't violate the law." Commenting about number
portability, he added, "The number belongs to the consumer. No operator can cause
trouble if they want to change operators." However, on 12 September 2016, Idea
Cellular agreed to allow Jio to use 196 of its interconnection access points.

Alleged subscriber data breach

On July 10, 2017, Reliance Jio's customer data was allegedly leaked on the website
magicapk.com. The website was suspended shortly after the news of the breach broke
out.

35
INTRODUCTION TO THE
TOPIC

36
 INTRODUCTION TO THE TOPIC
Introduction to Dividend

Dividends are payments made by a corporation to its shareholder members. It is the

portion of corporate profits paid out to stockholders. When a corporation earns a
profit or surplus, that money can be put to two uses: it can either be re-invested in the
business (called retained earnings), or it can be distributed to shareholders. There are
two ways to distribute cash to shareholders: share repurchases or dividends. Many
corporations retain a portion of their earnings and pay the remainder as a dividend.

A dividend is allocated as a fixed amount per share. Therefore, a shareholder receives

a dividend in proportion to their shareholding. For the joint stock company, paying
dividends is not an expense; rather, it is the division of after tax profits among
shareholders. Retained earnings (profits that have not been distributed as dividends)
are shown in the shareholder equity section in the company's balance sheet - the same
as its issued share capital.

Public companies usually pay dividends on a fixed schedule, but may declare a
dividend at any time, sometimes called a special dividend to distinguish it from
tDividends are usually paid in the form of cash, store credits (common among retail
consumers' cooperatives) and shares in the company (either newly created shares or
existing shares bought in the market.) Further, many public companies offer dividend
reinvestment plans, which automatically use the cash dividend to purchase additional
shares for the shareholder.

Dividend policy is concerned with taking a decision regarding paying cash dividend
in the present or paying an increased dividend at a later stage. The firm could also pay
in the form of stock dividends which unlike cash dividends do not provide liquidity to
the investors, however, it ensures capital gains to the stockholders. The expectations
of dividends by shareholders helps them determine the share value, therefore,
dividend policy is a significant decision taken by the financial managers of any
company investors don't really choose between future gains and cash dividends.

37
Relevance of dividend policy

Dividends paid by the firms are viewed positively both by the investors and the firms.
The firms which do not pay dividends are rated in oppositely by investors thus
affecting the share price. The people who support relevance of dividends clearly state
that regular dividends reduce uncertainty of the shareholders i.e.the earnings of the
firm is discounted at a lower rate, ke thereby increasing the market value. However, its
exactly opposite in the case of increased uncertainty due to non-payment of dividends.

Two important models supporting dividend relevance are given by Walter and
Gordon.

Walter's model

James E. Walter's model shows the relevance of dividend policy and its bearing on the
value of the share .Assumptions of the Walter model

1. Retained earnings are the only source of financing investments in the firm,
there is no external finance involved.
2. The cost of capital, k e and the rate of return on investment, r are constant i.e.
even if new investments decisions are taken, the risks of the business remains
same.
3. The firm's life is endless i.e. there is no closing down.

Basically, the firm's decision to give or not give out dividends depends on whether it
has enough opportunities to invest the retain earnings i.e. a strong relationship
between investment and dividend decisions is considered.

Model description

Dividends paid to the shareholders are re-invested by the shareholder further, to get
higher returns. This is referred to as the opportunity cost of the firm or the cost of
capital, ke for the firm. Another situation where the firms do not pay out dividends, is
when they invest the profits or retained earnings in profitable opportunities to earn
returns on such investments. This rate of return r, for the firm must at least be equal to
ke. If this happens then the returns of the firm is equal to the earnings of the

38
shareholders if the dividends were paid. Thus, its clear that if r, is more than the cost
of capital ke, then the returns from investments is more than returns shareholders
receive from further investments.

Walter's model says that if r<ke then the firm should distribute the profits in the form
of dividends to give the shareholders higher returns. However, if r>ke then the
investment opportunities reap better returns for the firm and thus, the firm should
invest the retained earnings. The relationship between r and k are extremely important
to determine the dividend policy. It decides whether the firm should have zero payout
or 100% payout.

In a nutshell :

If r>ke, the firm should have zero payout and make investments.
If r<ke, the firm should have 100% payouts and no investment of retained
earnings.
If r=ke, the firm is indifferent between dividends and investments.

Mathematical representation

Walter has given a mathematical model for the above made statements :

where,

P = Market price of the share

D = Dividend per share
r = Rate of return on the firm's investments
ke = Cost of equity
E = Earnings per share'

The market price of the share consists of the sum total of:

39
 the present value if an infinite stream of dividends
the present value of an infinite stream of returns on investments made from
retained earnings.

Therefore, the market value of a share is the result of expected dividends and capital
gains according to Walter.

Criticism

Although the model provides a simple framework to explain the relationship between
the market value of the share and the dividend policy, it has some unrealistic
assumptions.

1. The assumption of no external financing apart from retained earnings, for the
firm make further investments is not really followed in the real world.
2. The constant r and ke are seldom found in real life, because as and when a firm
invests more the business risks change.

Gordon's Model

Assumptions of the Gordon model

Gordon's assumptions are similar to the ones given by Walter. However, there are two
additional assumptions proposed by him :

1. The product of retention ratio b and the rate of return r gives us the growth rate
of the firm g.
2. The cost of capital ke, is not only constant but greater than the growth rate i.e.
ke>g

Model description

Investors are risk averse and believe that incomes from dividends are certain rather
than incomes from future capital gains, therefore they predict future capital gains to
be risky propositions. They discount the future capital gains at a higher rate than the
firm's earnings thereby, evaluating a higher value of the share. In short, when
retention rate increases, they require a higher discounting rate. Gordon has given a

40
model similar to Walter's where he has given a mathematical formula to determine
price of the share.

Mathematical representation

The market price of the share is calculated as follows:

where,

P = Market price of the share

E = Earnings per share
b = Retention ratio (1 - payout ratio)
r = Rate of return on the firm's investments
ke = Cost of equity
br = Growth rate of the firm (g)

Therefore the model shows a relationship between the payout ratio, rate of return, cost
of capital and t+he market price of the share.

Conclusions on the Walter and Gordon Model

Gordon's ideas were similar to Walter's and therefore, the criticisms are also similar.
Both of them clearly state the relationship between dividend policies and market value
of the firm.

Capital structure substitution theory & dividends

The capital structure substitution theory describes the relationship between earnings,
stock price and capital structure of public companies. The theory is based on one
simple hypothesis: company managements manipulate capital structure such that
earnings-per-share (EPS) are maximized. The resulting dynamic debt-equity target
explains why some companies use dividends and others do not. When redistributing
cash to shareholders, company managements can typically choose between dividends
and share repurchases. But as dividends are in most cases taxed higher than capital

41
gains, investors are expected to prefer capital gains. However, the CSS theory shows
that for some companies share repurchases lead to a reduction in EPS. These
companies typically prefer dividends over share repurchases.

Mathematical representation

From the CSS theory it can be derived that debt-free companies should prefer
repurchases whereas companies with a debt-equity ratio larger than

cshould prefer dividends as a means to distribute cash to shareholders, where

D is the company‘s total long term debt

is the company‘s total equity

is the tax rate on capital gains
is the tax rate on dividends

Low valued, high leverage companies with limited investment opportunities and a
high profitability use dividends as the preferred means to distribute cash to
shareholders, as is documented by empirical research.

The CSS theory provides more guidance on dividend policy to company

managements than the Walter model and the Gordon model. It also reverses the
traditional order of cause and effect by implying that company valuation ratios drive
dividend policy, and not vice-versa. The CSS theory does not have 'invisible' or
'hidden' parameters such as the equity risk premium, the discount rate, the expected
growth rate or expected inflation. As a consequence the theory can be tested in an
unambiguous way.

42
Irrelevance of dividend policy

The Modigliani and Miller school of thought believes that investors do not state any
preference between current dividends and capital gains. They say that dividend policy
is irrelevant and is not deterministic of the market value. Therefore, the shareholders
are indifferent between the two types of dividends. All they want are high returns
either in the form of dividends or in the form of re-investment of retained earnings by
the firm. There are two conditions discussed in relation to this approach :

decisions regarding financing and investments are made and do not change
with respect to the amounts of dividends received.
when an investor buys and sells shares without facing any transaction costs
and firms issue shares without facing any floatation cost, it is termed as a
perfect capital market.

Two important theories discussed relating to the irrelevance approach, the residuals
theory and the Modigliani and Miller approach.

Residuals theory of dividends

One of the assumptions of this theory is that external financing to re-invest is either
not available, or that it is too costly to invest in any profitable opportunity. If the firm
has good investment opportunity available then, they'll invest the retained earnings
and reduce the dividends or give no dividends at all. If no such opportunity exists, the
firm will pay out dividends.

If a firm has to issue securities to finance an investment, the existence of floatation

costs needs a larger amount of securities to be issued. Therefore, the pay out of
dividends depend on whether any profits are left after the financing of proposed
investments as floatation costs increases the amount of profits used. Deciding how
much dividends to be paid is not the concern here, in fact the firm has to decide how
much profits to be retained and the rest can then be distributed as dividends. This is
the theory of Residuals, where dividends are residuals from the profits after serving
proposed investments

43
This residual decision is distributed in three steps:

evaluating the available investment opportunities to determine capital

expenditures.
evaluating the amount of equity finance that would be needed for the
investment, basically having an optimum finance mix.
cost of retained earnings<cost of new equity capital, thus the retained profits
are used to finance investments. If there is a surplus after the financing then
there is distribution of dividends.

Extension of the theory

The dividend policy strongly depends on two things:

investment opportunities available to the company

amount of internally retained and generated funds which lead to dividend
distribution if all possible investments have been financed.

The dividend policy of such a kind is a passive one, and doesn't influence market
price. the dividends also fluctuate every year because of different investment
opportunities every year. However, it doesn't really affect the shareholders as they get
compensated in the form of future capital gains.

Conclusion

The firm paying out dividends is obviously generating incomes for an investor,
however even if the firm takes some investment opportunity then the incomes of the
investors rise at a later stage due to this profitable investment.

Modigliani-Miller theorem

The Modigliani–Miller theorem states that the division of retained earnings between
new investment and dividends do not influence the value of the firm. It is the
investment pattern and consequently the earnings of the firm which affect the share
price or the value of the firm.

44
Assumptions of the MM theorem

The MM approach has taken into consideration the following assumptions:

1. There is a rational behavior by the investors and there exists perfect capital
markets.
2. Investors have free information available for them.
3. No time lag and transaction costs exist.
4. Securities can be split into any parts i.e. they are divisible
5. No taxes and floatation costs.
6. The investment decisions are taken firmly and the profits are therefore known
with certainty. The dividend policy does not affect these decisions.

45
REVIEW OF LITERATURE

46
 REVIEW OF LITERATURE

Sujatakapoor, (2002),‖ Dividend Policy Determinants of Indian Services Sector:

A Factorial Analysis‖Paradigm”
Researcher has studied about the abnormal returns for dividend announcement are
investigated .
Linda Allen, AronGottesman, Anthony Saunders, and Yi Tang(2002)―The
Role of Banks in Dividend Policy”Financial Management”
We use loan-specific data to document a significant inverse relation between a
firm‘s dividendpayouts and the intensity of a firm‘s reliance on bank loan
financing

Y. Braouezec& C.-A. Lehalle,(2010) , ―Corporate Liquidity, Dividend Policy

and Default Risk”;International Journal of theoretical and Applied Finance
study the simplest discrete-time finite-maturity model in which default arises
when the firm is not able to pay its debt obligation using the current cash-flow
plus the corporate liquidity.
Bill B. Francis, IftekharHasan, Kose John, and Liang Song ,(2011) ,‖
Corporate Governance and Dividend Payout Policy” Financial Management
Managers strongly prefer not to pay dividends as dividend payouts reduce the
amount of cash subject to managerial discretion
Jeffrey R. Brown and Scott( 2012) , ―Executive Financial Incentives and Payout
Policy: Firm Responses to the 2003 Dividend tax cut‖The journal of finance;―,
To test whether executive stock ownership affects firm payouts using the 2003
dividendtax cut to identify an exogenous change in the after-tax value of
dividends
Bo Becker is at Harvard .ZoranIvkovi´ , (2011) , ―Local Dividend
Clientele”,The journal of finance‖
To exploit demographic variation to identify the effect of dividend demand on
corporate
HARRY DEANGELO and LINDA DEANGELO ,(1990), ―Dividend Policy
and Financial Distress” The journal of finance‖
This paper studies the dividend policy adjustments of 80 NYSE firms to protracted

47
financial distress as evidenced by multiple losses during 1980-1985
Fodil Adjaoud and Walid Ben-Ama,(2010) Corporate Governance and
DividendPolicy: Shareholders‘ Protection or Expropriation,‖ Journal of Business
Finance & Accounting”,
To investigate the relationship between corporate governance quality and
dividend
policy in Canada.

48
RESEARCH METHODOLOGY
AND OBJECTIVES

49
 OBJECTIVES OF THE STUDY

1. To determine the growth in dividend payout of selected companies of

telecommunication sector.
2. To examine the correlation of dividend with profitability, retained earnings,
size of firm, promoter‘s holding, cash flows and interest on debentures.

3. To study the impact of independent variables on dependent variable through

regression analysis.

4. To study the most significant determinant of dividend payout of sample

companies.

50
 RESEARCH METHODOLOGY
Research is defined as ―a scientific & systematic search for pertinent information on a
specific topic‖. Research is an art of scientific investigation. Research is a systemized
effort to gain new knowledge. It is a careful inquiry especially through search for new
facts in any branch of knowledge. The search for knowledge through objective and
systematic method of finding solution to a problem is a research

Steps in Research Methodology:

1. Problem statement
2. Research design
3. Sample design
4. Data collection
5. Organization Of Data
6. Presentation Of Data
7. Analysis and Interpretation of data

RESEARCH DESIGN:
Research design is a master plan specifying the methods and procedures for collecting
and analyzing the needed information. It is a framework or the blueprint that plans the
action for research project. The objectives of the study determined during the early

51
stages of the research are included in the design to ensure that the information
collected is appropriate for solving the problem.
The design is such studies must be rigid and not flexible and most focus attention on
the following;
1. What is the study about?
2. Why is the study being made?
3. Where will the study be carried out?
4. What type of data is required?
5. where can be required data be found?
6. What period of time will the study include?
7. What will be sample design?
8. What techniques of data collection will be used?
9. How will the data be analyzed?
10. In what style will the report be prepared

At the outset may be noted that there are several ways of studying and tackling a
problem. The formidable problem that follows the task of defining the research
problem is the preparation of the design of research project popularly known as
research design.

TYPES OF RESEARCH
DESIGN

EXPLORATORY DESCRIPTIVE & EXPERIMENTAL

RESEARCH DIAGONOSTIC RESEARCH DESIGN
RESEARCH DESIGN

EXPLORATORY RESEARCH DESIGN

Exploratory research design is termed as formulating research studies. The main
purpose of study is that of formulating a problem. The major emphasis in such study
is on discovery of new idea‘s and insights. As such the research design appropriate for

52
such studies must be flexible enough to provide opportunity for considering different
aspects of problem.

DESCRIPTIVE AND DIAGNOSTIC RESEARCH DESIGN

Descriptive research designs are those design which are concerned with describing
the characteristics of particular individual or of the group whereas diagnostic research
studies determine the frequency with which something occurs or its association with
some else. In descriptive and diagnostic study the researcher must be able to define
clearly what he wants to measure and must find adequate method for measuring it.

EXPERIMENTAL RESEARCH DESIGN

These are those studies where the researcher tests the hypothesis of casual relationship
between variables. Such study requires procedure that will not only reduce biasness
and increase reliability but will permit drawing influence about causality. Usually
experiments meets this requirement, hence these research designs are prepared for
experiment.

RESEARCH DESIGN IN STUDY

In the study I will apply exploratory cumdescriptive research design. As
descriptive research design is the description of state of affairs, as it exists at
present. In this type of research the researcher has no control over the variables; he
can only report what has happened or what is happening.

TIME HORIZON
1. One Shot (Cross Sectional)
2. Longitudinal
In this study, Time Horizon Is Cross Sectional as the time horizon for study is the
five years time period.

53
STUDY SETTING

STUDY SETTING

Contrived Non-contrived

The Project Report Is Based On Non- Contrived Study Setting.

MEASUREMENT AND SCALING

1. Operational definition
2. Items (measures)
3. Scaling
4. Categorization
5. Coding

54
55
 HYPOTHESIS TESTING
A hypothesis can be defined as a logically conjectured relationship between two or more
variables expressed in the form of a testable statements. Formulating such testable
statements is called Hypothesis Development. Hypothesis Testing is a means of testing if
the ‗if-then statements‘ generated from the theoretical framework hold true when
subjected to rigorous examination.
There are two types of hypothesis:
a) Null Hypothesis
b) Alternative Hypothesis
Null Hypothesis: The null hypothesis asserts that there is no difference between the
sample statistic and the population parameter and whatever the observed difference is
there is merely due to fluctuations in sampling from the same population.

Alternative hypothesis: Any hypothesis different from, the null hypothesis is called an
alternative hypothesis and is denoted by the symbol H1.

t-test
Bharti Airtel
H0: There is no significant impact of Size of firm on Dividend payment of Bharti Airtel.
H1: There is significant impact of Size of firm on Dividend payment of Bharti Airtel.

One-Sample Statistics

N Mean Std. Deviation Std. Error Mean

S.F 5 3.4700E3 650.02731 290.70105

One-Sample Test

Test Value = 3470

95% Confidence Interval of the

Difference

T Df Sig. (2-tailed) Mean Difference Lower Upper

S.F 13.5674 4 .004 .00000 -807.1155 807.1155

INTERPRETATION: Since the significance value i.e. 0.004 which is less than P-value
i.e. 0.05, therefore alternative hypothesis will be accepted and null hypothesis is rejected.

56
T-Test
H0: There is no significant impact of retained earnings on Dividend payment of Bharti
Airtel.
H1: There is significant impact of retained earnings on Dividend payment of Bharti
Airtel.

One-Sample Statistics

N Mean Std. Deviation Std. Error Mean

RET.E 5 9.5282E3 288.64892 129.08772

One-Sample Test

Test Value = 7623

95% Confidence Interval of the

Difference

T Df Sig. (2-tailed) Mean Difference Lower Upper

RET.E 14.759 4 .000 1905.20000 1546.7950 2263.6050

INTERPRETATION: Since the significance value i.e. 0.000 which is less than P-value
i.e. 0.05, therefore alternative hypothesis will be accepted and null hypothesis is rejected
VODAFONE IDEA LIMITED
H0: There is no significant impact of retained earnings on Dividend payment of
VODAFONE IDEA LIMITED.
H1: There is significant impact of retained earnings on Dividend payment of
VODAFONE IDEA LIMITED.

One-Sample Statistics

N Mean Std. Deviation Std. Error Mean

RET.E 5 6.9128E3 3678.95158 1645.27716

One-Sample Test

Test Value = 6912

95% Confidence Interval of the

Difference

T Df Sig. (2-tailed) Mean Difference Lower Upper

RET.E 12.123 4 0.001 .80000 -4567.2217 4568.8217

57
INTERPRETATION: Since the significance value i.e. 0.001 which is less than P-value
i.e. 0.05, therefore alternative hypothesis will be accepted and null hypothesis is rejected.

t-Test
H0: There is no significant impact ofinterston debentures on Dividend payment of
VODAFONE IDEA LIMITED.
H1: There is significant impact ofinterst on debentures on Dividend payment of
VODAFONE IDEA LIMITED.

One-Sample Statistics

N Mean Std. Deviation Std. Error Mean

INT.DEB 5 1.7240E2 39.97874 17.87904

One-Sample Test

Test Value = 6912

95% Confidence Interval of the

Difference

T Df Sig. (2-tailed) Mean Difference Lower Upper

INT.DEB -376.955 4 .000 -6739.60000 -6789.2402 -6689.9598

INTERPRETATION: Since the significance value i.e. 0.000 which is less than P-value
i.e. 0.05, therefore alternative hypothesis will be accepted and null hypothesis is rejected.

RELIANCE JIO
t-Test
H0: There is no significant impact ofSize of firm on Dividend payment of RELIANCE
JIO .
H1: There is significant impact ofSize of firm on Dividend payment of RELIANCE JIO .

One-Sample Statistics

N Mean Std. Deviation Std. Error Mean

S.F 5 3.4170E3 259.56020 116.07885

58
 One-Sample Test

Test Value = 4417

95% Confidence Interval of the

Difference

T df Sig. (2-tailed) Mean Difference Lower Upper

S.F -8.615 4 .002 -1000.00000 -1322.2866 -677.7134

INTERPRETATION: Since the significance value i.e. 0.002 which is less than P-value
i.e. 0.05, therefore alternative hypothesis will be accepted and null hypothesis is rejected.

T-Test
H0: There is no significant impact of promoter holding on Dividend payment of
RELIANCE JIO .

H1: There is significant impact ofpromoter holding on Dividend payment of RELIANCE

JIO

One-Sample Statistics

N Mean Std. Deviation Std. Error Mean

P.H 5 6.5132E3 1172.79205 524.48855

One-Sample Test

Test Value = 6513

95% Confidence Interval of the

Difference

T df Sig. (2-tailed) Mean Difference Lower Upper

P.H 34567 4 .004 .20000 -1456.0137 1456.4137

INTERPRETATION: Since the significance value i.e. 0.004 which is less than P-value
i.e. 0.05, therefore alternative hypothesis will be accepted and null hypothesis is rejected.

59
 DATA COLLECTION

Secondary data: It is the data, which has already collected by some organization for
some purpose or research study. The data for my study has been collected from various.
Secondary data means that data that are already available i.e. refers to data which has
already been collected and analyzed by someone else. The sources used in this case are-

1. Books
2. Journals
3. Magazines
4. Internet sources
5. annual reports

60
 LIMITATIONS OF STUDY
TIME CONSTRAINT: The duration of the training was not sufficient to lay down
through emphasis on the various aspects of Dividend paid.
RESOURCE CONSTRAINT: Resources available for the analysis of the dividend paid
were not sufficient as mainly the annual report was provided by the company which was
not revealing the details aspects of financial matters in the company.
PERIOD OF ANALYSIS: The period of study is four financial years for the analysis
and this duration was not sufficient to conclude about any of the aspect.
SECONDARY DATA: The data used for the analysis was secondary in nature as it was
taken from the annual reports of the company.
SECRECY OF INTERNAL DATA: There were various issues regarding dividend
which were not revealed by the company due to their privacy policy.
WIDE AREA TO STUDY: There was the wide scope of the study but could not be
covered completely due to the lack of time and resources.

61
 ANALYTICAL TOOLS

The data collected in the aforesaid manner have been tabulated in condensed from to
draw the meaningful results. The different techniques are adopted to analyze the data.

RATIO ANALYSIS
A ratio is the mathematical relationship between two quantities in the form of a fraction
or percentage. Ratio analysis is essentially concerned with the calculation of
relationships which after proper identification and interpretation may provide information
about the operations and state of affairs of a business enterprise. The analysis is used to
provide indicators of past performance in terms of critical success factors of a business.
This assistance in decision-making reduces reliance on guesswork and intuition and
establishes a basis for sound judgment. A ratio on its own has little or no meaning at all.

Significance of Using Ratios:

The significance of a ratio can only truly be appreciated when:

 It is compared with other ratios in the same set of financial statements.
 It is compared with the same ratio in previous financial statements (trend
analysis).
 It is compared with a standard of performance (industry average). Such a standard
may be either the ratio which represents the typical performance of the trade or
industry, or the ratio which represents the target set by management as desirable
for the business.

62
Dividend payout ratio
The dividend payout ratio is the amount of dividends paid to stockholders relative to the
amount of total net income of a company. The amount that is not paid out in dividends to
stockholders is held by the company for growth. The amount that is kept by the company
is called retained earnings.

YEAR 2019 2018 2017 2016 2015

AIRTEL 6.7 4.96 4.06 4.94 0
VODAFONE 34.68 37.18 0 25.95 45.37
IDEA LIMITED
RELIANCE JIO 0 0 0 31.34 46.32

50
45
40
35
30
AIRTEL
25
VODAFONE IDEA LIMITED
20
RELIANCE JIO
15
10
5
0
2019 2018 2017 2016 2015

Interpretation :-
This table shows the dividend payout ratio of Airtel is zero in 2015 but it is increased
till 2019. The payout ratio of VODAFONE IDEA LIMITED decrease after 2016 & of
RELIANCE JIO ratio is more but it is also decrease after 2016 & 2018,so the
dividend payout ratio shows the growth of companies.

63
Dividends per share
Dividends per share are usually easily found on quote pages as the dividend paid in the
most recent quarter which is then used to calculate the dividend yield. Dividends over the
entire year (not including any special dividends) must be added together for a proper
calculation of DPS, including interim dividends. Special dividends are dividends which
are only expected to be issued once so are not included.

DPS = DIVIDEND / NO OF SHARE

YEAR 2019 2018 2017 2016 2015

AIRTEL 7.28 8.46 7.64 4.69 0.00
VODAFONE IDEA 6.25 8.1 0.00 11.56 19.93
LIMITED
RELIANCE JIO 0.00 0.00 0.00 7.34 4.56

25

20

15
AIRTEL
VODAFONE IDEA LIMITED
10
RELIANCE JIO

0
2019 2018 2017 2016 2015

Interpretation
This table shows the dividend per share of Airtel is increasing and decreasing every year.
The dividend per share of VODAFONE IDEA LIMITED is highest in 2019 & lowest in
2015 & RELIANCE JIO ratio is highest in 2016 & lowest in 2018. This ratio shows
exact position of companies in terms of growth

64
Price earnings ratio

Price earnings ratio helps the investor in deciding whether to buy or not to buy the shares
of a particular company at a particular market price.

Price Earnings Ratio = Market price per equity share / Earningspershare

YEAR 2019 2018 2017 2016 2015

AIRTEL 30.48 23.48 13.02 15.24 24.52
VODAFONE IDEA 0 0 0 50.02 45.09
LIMITED
RELIANCE JIO 0 22.8 12.3 19.8 25

60

50

40

AIRTEL
30
VODAFONE IDEA LIMITED
20 RELIANCE JIO

10

0
2019 2018 2017 2016 2015

Interpretation
The P.E ratio of Airtel is highest in 2019 & lowest in 2017. VODAFONE IDEA
LIMITED‘s ratio is highest in 2015 & lowest in 2019,2018,2017 &RELIANCE JIO ratio
is highest in 2018 & lowest in 2019. This tables shows the highest growth in PE ratio of
Airtel so investor can purchase Airtel shares.

65
 Return On Equity (ROE) Ratio

Return on equity or return on capital is the ratio of net income of a business during a year
to its stockholders' equity during that year. It is a measure of profitability of stockholders'
investments. It shows net income as percentage of shareholder equity

Annual Net Income

ROE =

Average Stockholders' Equity

YEAR 2019 2018 2017 2016 2015

AIRTEL 13.26 18.03 26.07 33.17 34.83
VODAFONE 4.79 4.07 3.19 7.54 7.05
IDEA LIMITED
RELIANCE JIO 0 0 0 3.32 7.03

40

35

30

25
AIRTEL
20
VODAFONE IDEA LIMITED
15
RELIANCE JIO
10

0
2019 2018 2017 2016 2015

Interpretation
The ROE of Airtel is highest in 2015 & lowest in 2019. VODAFONE IDEA
LIMITED‘s ratio is highest in 2016 & lowest in 2017 &RELIANCE JIO ratio is highest
in 2015 & lowest in 2019,2018,2017. This table shows that the highest profitability of
stock holders of Airtel company among three companies.
66
 STATISTICAL TOOLS

An educated citizen needs an understanding of basic statistical tool to function in a world

that is becoming increasingly dependent on quantitative information. Statistics means
numerical description to most people. In fact the term statistics is generally used to mean
numerical facts and figures such as agriculture production during a year, rate of inflation
and so on. However as a subject of study, statistics refers to the body of principles and
procedures developed for the collection, classification, summarization and interpretation
of numerical data and for the use of such data.
MEANING:-
Broadly speaking, the term statistics has been generally used in two senses:-
₹ Plural Sense
₹ Singular Sense
Plural sense refers to the numerical data. Singular Sense refers to a Science in which
we deals with the techniques of collecting, classifying, presenting, analyzing and
interpreting the data, the concept in its singular sense, refers to Statistical Method.
PURPOSE: Without the assistance of Statistical Method, an organization would find it
impossible to make sense of the huge data. The purpose of statistics is to:-
₹ Analyze
₹ Summarize
₹ Investigate
₹ Record

TOOLS TO BE USED:-

CORRELATION

REGRESSION

67
 Correlations of bharti airtel
Correlations
DIVIDEND Profitability CF S.F P.H

DIVIDEND Pearson Correlation 1 -.234 .813 .899* .742

Sig. (2-tailed) .705 .094 .038 .151

N 5 5 5 5 5
Profitability Pearson Correlation -.234 1 -.043 -.619 -.812
Sig. (2-tailed) .705 .945 .265 .095
N 5 5 5 5 5
CF Pearson Correlation .813 -.043 1 .733 .567
Sig. (2-tailed) .094 .945 .159 .319
N 5 5 5 5 5
* **
S.F Pearson Correlation .899 -.619 .733 1 .959
Sig. (2-tailed) .038 .265 .159 .010
N 5 5 5 5 5
**
P.H Pearson Correlation .742 -.812 .567 .959 1
Sig. (2-tailed) .151 .095 .319 .010
N 5 5 5 5 5
INT.DEB Pearson Correlation .333 .255 .059 .067 -.084
Sig. (2-tailed) .583 .678 .925 .914 .893
N 5 5 5 5 5
RET.E Pearson Correlation -.914* .587 -.720 -.995** -.946*

Sig. (2-tailed) .030 .298 .170 .000 .015

N 5 5 5 5 5

Correlations
INT.DEB RET.E

DIVIDEND Pearson Correlation .333 -.914*

Sig. (2-tailed) .583 .030

N 5 5
Profitability Pearson Correlation .255 .587
Sig. (2-tailed) .678 .298
N 5 5
CF Pearson Correlation .059 -.720
Sig. (2-tailed) .925 .170
N 5 5
S.F Pearson Correlation .067 -.995**
Sig. (2-tailed) .914 .000
N 5 5
P.H Pearson Correlation -.084 -.946*

68
 Sig. (2-tailed) .893 .015
N 5 5
INT.DEB Pearson Correlation 1 -.055
Sig. (2-tailed) .930
N 5 5
RET.E Pearson Correlation -.055 1

Sig. (2-tailed) .930

N 5 5

INTERPRETATION

This table shows that there is moderate degree of positive correlation between dividend &
promoter holding. There is low degree of negative correlation between dividend &
profitability and high degree of positive correlation between dividend & cash flow, size of
firm. There is significant correlation between size of firm and retained earnings.

69
 Correlations OF VODAFONE IDEA LIMITED

Correlations
PROFITABILIT
DIVIDEND Y CF S.F P.H

DIVIDEND Pearson Correlation 1 .607 .526 .030 .324

Sig. (2-tailed) .278 .362 .962 .595

N 5 5 5 5 5
PROFITABILITY Pearson Correlation .607 1 .398 -.379 -.453
Sig. (2-tailed) .278 .507 .529 .444
N 5 5 5 5 5
CF Pearson Correlation .526 .398 1 -.646 .180
Sig. (2-tailed) .362 .507 .239 .772
N 5 5 5 5 5
S.F Pearson Correlation .030 -.379 -.646 1 .561
Sig. (2-tailed) .962 .529 .239 .325
N 5 5 5 5 5
P.H Pearson Correlation .324 -.453 .180 .561 1
Sig. (2-tailed) .595 .444 .772 .325
N 5 5 5 5 5
INT.DEB Pearson Correlation .189 -.377 -.598 .804 .432
Sig. (2-tailed) .761 .531 .287 .101 .468
N 5 5 5 5 5
RET.E Pearson Correlation -.892* -.855 -.322 .025 .071

Sig. (2-tailed) .042 .065 .597 .969 .910

N 5 5 5 5 5

Correlations
INT.DEB RET.E

DIVIDEND Pearson Correlation .189 -.892*

Sig. (2-tailed) .761 .042

N 5 5
PROFITABILITY Pearson Correlation -.377 -.855
Sig. (2-tailed) .531 .065
N 5 5
CF Pearson Correlation -.598 -.322
Sig. (2-tailed) .287 .597
N 5 5
S.F Pearson Correlation .804 .025
Sig. (2-tailed) .101 .969

70
 N 5 5
P.H Pearson Correlation .432 .071
Sig. (2-tailed) .468 .910
N 5 5
INT.DEB Pearson Correlation 1 -.094
Sig. (2-tailed) .881
N 5 5
RET.E Pearson Correlation -.094 1

Sig. (2-tailed) .881

N 5 5

INTERPRETATION
This table shows that there is moderate degree of positive correlation between dividend &
promoter holding, profitability, cash flow. There is low degree of positive correlation
between dividend & size of firm. There is negative and high degree of correlation
between dividend payment with retained earnings and the correlation is significant.

71
 Correlations of RELIANCE JIO

Correlations
DIVIDE PROFITABILIT
ND Y C.F S.F P.H

DIVIDEND Pearson Correlation 1 .269 .787 -.306 -.899*

Sig. (2-tailed) .662 .114 .617 .038

N 5 5 5 5 5
PROFITABILITY Pearson Correlation .269 1 .400 .597 .059
Sig. (2-tailed) .662 .504 .288 .925
N 5 5 5 5 5
C.F Pearson Correlation .787 .400 1 .223 -.486
Sig. (2-tailed) .114 .504 .719 .407
N 5 5 5 5 5
S.F Pearson Correlation -.306 .597 .223 1 .601
Sig. (2-tailed) .617 .288 .719 .284
N 5 5 5 5 5
*
P.H Pearson Correlation -.899 .059 -.486 .601 1
Sig. (2-tailed) .038 .925 .407 .284
N 5 5 5 5 5
*
INT.DEB Pearson Correlation .353 .919 .231 .323 -.164
Sig. (2-tailed) .560 .027 .708 .596 .792
N 5 5 5 5 5
RET.E Pearson Correlation .180 -.067 .689 .386 .075

Sig. (2-tailed) .772 .914 .198 .521 .905

N 5 5 5 5 5

Correlations
INT.DEB RET.E

DIVIDEND Pearson Correlation .353 .180

Sig. (2-tailed) .560 .772

N 5 5
*
PROFITABILITY Pearson Correlation .919 -.067
Sig. (2-tailed) .027 .914
N 5 5
C.F Pearson Correlation .231 .689
Sig. (2-tailed) .708 .198
N 5 5
S.F Pearson Correlation .323 .386
Sig. (2-tailed) .596 .521

72
 N 5 5
P.H Pearson Correlation -.164 .075
Sig. (2-tailed) .792 .905
N 5 5
INT.DEB Pearson Correlation 1 -.401
Sig. (2-tailed) .504
N 5 5
RET.E Pearson Correlation -.401 1

Sig. (2-tailed) .504

N 5 5

INTERPRETATION
This table shows that there is moderate degree of positive correlation between dividend&
profitability. There is high degree of positive correlation between dividend & cash flow.
There is significant correlation between dividend payment and promoter holding.

73
 REGRESSION

―Regression is the study of the nature of relationship between the variables so that one
may be able to predict the unknown value of one variable for a known value of another
variable
In regression, one variable is considered as an independent variable is taken as dependent
variable. With the help of regression, possible values of the dependent variable are
estimated on the basis of the values of the independent variables.
DEFINITION OF REGRESSION
―Regression is the measure of the average relationship between two or more variables.‖ –
M.M. BLAIR.
REGRESSION EQUATION OF Y ON X
Y = a + bX
The two normal equations are:
∑Y = Na + b ∑X
∑XY = a∑X + b∑X2
REGRESSION EQUATION OF X ON Y
Y = a + bX
The two normal equations are:
∑X = Na + b ∑Y
∑XY = a∑Y + b∑Y2

Regression of Bharti Airtel

Model Summary
Adjusted R Std. Error of the
Model R R Square Square Estimate
a
1 .234 .055 -.260 10.04079

a. Predictors: (Constant), profitability

ANOVAb
Model Sum of Squares Df Mean Square F Sig.

1 Regression 17.548 1 17.548 .174 .705a

Residual 302.452 3 100.817

Total 320.000 4

74
 ANOVAb
Model Sum of Squares Df Mean Square F Sig.

1 Regression 17.548 1 17.548 .174 .705a

Residual 302.452 3 100.817

Total 320.000 4

a. Predictors: (Constant), profitability

b. Derpendent Variable: DIVIDEND

INTERPERATATION:
As the R Square value is o.55 so the impact of profitability on dividend payment is to the
extent of 5.5%

Model Summary
Adjusted R Std. Error of the
Model R R Square Square Estimate

1 .813a .662 .549 6.00639

a. Predictors: (Constant), CF

ANOVAb
Model Sum of Squares Df Mean Square F Sig.

1 Regression 211.770 1 211.770 5.870 .094a

Residual 108.230 3 36.077

Total 320.000 4

a. Predictors: (Constant), CF
b. Dependent Variable: DIVIDEND
INTERPERATATION:

As the R Square value is o.662so the impact of cash flow on dividend payment is to the
extent of 66.2%.
Model Summary
Adjusted R Std. Error of the
Model R R Square Square Estimate
a
1 .899 .808 .744 4.52969

a. Predictors: (Constant), S.F

75
 ANOVAb
Model Sum of Squares Df Mean Square F Sig.

1 Regression 258.446 1 258.446 12.596 .038a

Residual 61.554 3 20.518

Total 320.000 4

a. Predictors: (Constant), S.F

b. Dependent Variable: DIVIDEND
INTERPERATATION

As the R Square value is o.808 so the impact of size of firm on dividend payment is to the
extent of 80%
Model Summary
Adjusted R Std. Error of the
Model R R Square Square Estimate

1 .742a .551 .401 6.91958

a. Predictors: (Constant), P.H

ANOVAb
Model Sum of Squares Df Mean Square F Sig.

1 Regression 176.358 1 176.358 3.683 .151a

Residual 143.642 3 47.881

Total 320.000 4

a. Predictors: (Constant), P.H

b. Dependent Variable: DIVIDEND
INTERPERATATION
As the R Square value is o.55 so the impact of promoter holding on dividend payment is
to the extent of 55%
Model Summary
Adjusted R Std. Error of the
Model R R Square Square Estimate
a
1 .333 .611 -.185 9.73688

a. Predictors: (Constant), INT.DEB

ANOVAb
Model Sum of Squares Df Mean Square F Sig.
1 Regression 35.579 1 35.579 .375 .583a

Residual 284.421 3 94.807

76
 Total 320.000 4

a. Predictors: (Constant), INT.DEB

b. Dependent Variable: DIVIDEND
INTERPERATATION:
As the R Square value is o.61so the impact of interest on debentures on dividend payment
is to the extent of 61%
Model Summary
Adjusted R Std. Error of the
Model R R Square Square Estimate
a
1 .914 .835 .780 4.19671

a. Predictors: (Constant), RET.E

ANOVAb
Model Sum of Squares Df Mean Square F Sig.

1 Regression 267.163 1 267.163 15.169 .030a

Residual 52.837 3 17.612

Total 320.000 4

a. Predictors: (Constant), RET.E

b. Dependent Variable: DIVIDEND
INTERPERATATION:
As the R Square value is o.83 so the impact of retained earnings on dividend payment is
to the extent of 83.5%
Regression of VODAFONE IDEA LIMITED
Model Summary
Adjusted R Std. Error of the
Model R R Square Square Estimate
a
1 .607 .369 .158 17.59009

a. Predictors: (Constant), PROFITABILITY

ANOVAb
Model Sum of Squares Df Mean Square F Sig.

1 Regression 541.766 1 541.766 1.751 .278a

Residual 928.234 3 309.411

Total 1470.000 4

77
 ANOVAb
Model Sum of Squares Df Mean Square F Sig.

1 Regression 541.766 1 541.766 1.751 .278a

Residual 928.234 3 309.411

Total 1470.000 4

a. Predictors: (Constant), PROFITABILITY

b. Dependent Variable: DIVIDEND
INTERPERATATION:
As the R Square value is o.369 so the impact of profitability on dividend payment
is to the extent of 36%
Model Summary
Adjusted R Std. Error of the
Model R R Square Square Estimate
a
1 .526 .277 .036 18.82061

a. Predictors: (Constant), CF

ANOVAb
Model Sum of Squares Df Mean Square F Sig.

1 Regression 407.354 1 407.354 1.150 .362a

Residual 1062.646 3 354.215

Total 1470.000 4

a. Predictors: (Constant), CF
b. Dependent Variable: DIVIDEND

INTERPERATATION:
As the R Square value is o.27 so the impact of cash flow on dividend payment is
to the extent of 27%

Model Summary
Adjusted R Std. Error of the
Model R R Square Square Estimate

1 .030a .601 -.332 22.12615

a. Predictors: (Constant), S.F

78
 ANOVAb
Model Sum of Squares Df Mean Square F Sig.

1 Regression 1.300 1 1.300 .003 .962a

Residual 1468.700 3 489.567

Total 1470.000 4

a. Predictors: (Constant), S.F

b. Dependent Variable: DIVIDEND

INTERPERATATION:
As the R Square value is o.601% so the impact of size of firm on dividend payment is to
the extent of 60%

Model Summary
Adjusted R Std. Error of the
Model R R Square Square Estimate
1 .324a .505 -.193 20.94060

a. Predictors: (Constant), P.H

ANOVAb
Model Sum of Squares Df Mean Square F Sig.

1 Regression 154.474 1 154.474 .352 .595a

Residual 1315.526 3 438.509

Total 1470.000 4

a. Predictors: (Constant), P.H

b. Dependent Variable: DIVIDEND

INTERPERATATION:
As the R Square value is o.505so the impact of promoter holding on dividend payment is
to the extent of 50%

Model Summary
Adjusted R Std. Error of the
Model R R Square Square Estimate

1 .189a .736 -.286 21.73893

a. Predictors: (Constant), INT.DEB

79
 ANOVAb
Model Sum of Squares Df Mean Square F Sig.

1 Regression 52.256 1 52.256 .111 .761a

Residual 1417.744 3 472.581

Total 1470.000 4

a. Predictors: (Constant), INT.DEB

b. Dependent Variable: DIVIDEND

INTERPERATATION:
As the R Square value is o.736 so the impact of interest on deb. on dividend payment is to
the extent of 73.6%
Model Summary
Adjusted R Std. Error of the
Model R R Square Square Estimate

1 .892a .795 .726 10.02630

a. Predictors: (Constant), RET.E

ANOVAb
Model Sum of Squares Df Mean Square F Sig.

1 Regression 1168.420 1 1168.420 11.623 .042a

Residual 301.580 3 100.527

Total 1470.000 4

a. Predictors: (Constant), RET.E

b. Dependent Variable: DIVIDEND

INTERPERATATION:
As the R Square value is o.795% so the impact of retained earnings on dividend payment
is to the extent of 79.5
Regression of RELIANCE JIO

Model Summary
Adjusted R Std. Error of the
Model R R Square Square Estimate

1 .269a .672 -.237 12.89460

a. Predictors: (Constant), PROFITABILITY

80
 ANOVAb
Model Sum of Squares Df Mean Square F Sig.

1 Regression 38.871 1 38.871 .234 .662a

Residual 498.812 3 166.271

Total 537.683 4

a. Predictors: (Constant), PROFITABILITY

b. Dependent Variable: DIVIDEND

INTERPERATATION:
As the R Square value is o.672 so the impact of profitability on dividend payment is to
the extent of 67.2%.
Model Summary
Adjusted R Std. Error of the
Model R R Square Square Estimate
1 .787a .619 .492 8.26584

a. Predictors: (Constant), C.F

ANOVAb
Model Sum of Squares Df Mean Square F Sig.

1 Regression 332.710 1 332.710 4.870 .114a

Residual 204.973 3 68.324

Total 537.683 4

a. Predictors: (Constant), C.F

b. Dependent Variable: DIVIDEND

INTERPERATATION:
As the R Square value is o.619 so the impact of cash flow on dividend payment is to the
extent of 61%

Model Summary
Adjusted R Std. Error of the
Model R R Square Square Estimate

1 .306a .794 -.208 12.74532

a. Predictors: (Constant), S.F

81
 ANOVAb
Model Sum of Squares Df Mean Square F Sig.

1 Regression 50.353 1 50.353 .310 .617a

Residual 487.330 3 162.443

Total 537.683 4

a. Predictors: (Constant), S.F

b. Dependent Variable: DIVIDEND

INTERPERATATION:
As the R Square value is o.794so the impact of size of firm on dividend payment is to the
extent of 79.4%

Model Summary
Adjusted R Std. Error of the
Model R R Square Square Estimate

1 .899a .807 .743 5.87676

a. Predictors: (Constant), P.H

ANOVAb
Model Sum of Squares Df Mean Square F Sig.

1 Regression 434.074 1 434.074 12.569 .038a

Residual 103.609 3 34.536

Total 537.683 4

a. Predictors: (Constant), P.H

b. Dependent Variable: DIVIDEND
INTERPERATATION:
As the R Square value is o.807 so the impact of promoter holding on dividend
payment is to the extent of 80.7%

Model Summary
Adjusted R Std. Error of the
Model R R Square Square Estimate

1 .353a .625 -.167 12.52648

a. Predictors: (Constant), INT.DEB

82
 ANOVAb
Model Sum of Squares Df Mean Square F Sig.

1 Regression 66.945 1 66.945 .427 .560a

Residual 470.738 3 156.913

Total 537.683 4

a. Predictors: (Constant), INT.DEB

b. Dependent Variable: DIVIDEND

INTERPERATATION:
As the R Square value is o.625 so the impact of interest on deb.on dividend payment is to
the extent of 62.5%
Model Summary
Adjusted R Std. Error of the
Model R R Square Square Estimate
1 .180a .032 -.290 13.16833

a. Predictors: (Constant), RET.E

ANOVAb
Model Sum of Squares Df Mean Square F Sig.

1 Regression 17.468 1 17.468 .101 .772a

Residual 520.215 3 173.405

Total 537.683 4

a. Predictors: (Constant), RET.E

b. Dependent Variable: DIVIDEND

INTERPERATATION:
As the R Square value is o.32% so the impact of retained earnings on dividend payment is
to the extent of 32%

83
 FINDINGS,
SUGGESTIONS AND
CONCLUSION

84
 FINDINGS

In case of Bharti Airtel, Alternative hypothesis is accepted, which indicates that

there is significant impact of Size of firmand retained earningson Dividend
payment.
In case of VODAFONE IDEA LIMITED, Alternative hypothesis is accepted,
which indicates that there is significant impact of interest on debenturesand
retained earningson Dividend payment
In case of RELIANCE JIO , Alternative hypothesis is accepted, which indicates
that there is significant impact of size of firm and promoter‘s holding on
Dividend payment
In case VODAFONE IDEA LIMITED, there is high degree of negative
correlation of dividend payment with retained earnings which justify that when
the retained earnings increases dividend payment decreases.
In case of RELIANCE JIO there is significant positive correlation between
dividend payment and promoter‘s holdings.
It is concluded that the highest impact ofretained earningson dividend payment in
case of Bharti Airtel, VODAFONE IDEA LIMITED and RELIANCE JIO
Overall it is concluded that size of firm, retained earnings, interest on
debentures and promotor’s holdingare significant determinants of dividend
payment by companies included in the sample.

85
 SUGGESTIONS

Companies have to distribute cash dividend to increase the interest of shareholder.

Companies should distribute a share of its profits among the shareholders.

No dividend may be declared or paid unless it is in accordance with shareholders'

respective rights.

Dividends depend on company‘s earning, financial condition, market so these

factors must be studied.

Companies should try to maintain the secrecy before announcing the dividend.

86
 CONCLUSION

Researcher suggested various policies to organization which the researcher think that if
they implemented in the right manner will increase the earnings of the firm which in turn
increases the goodwill of the firm. If the goodwill of firm is good in the market, then it
will raise funds at low interest rates The various policies that should be applied in an
organization on the basis of my study performance analysis of Bharti Airtel,
VODAFONE IDEA LIMITED, RELIANCE JIO are as follows: The companies must
concentrate on increasing the size of firm which will increase the profitability and
ultimately increase the dividend payment. As retained earnings are showing negative
correlation with dividend payment so companies must try to reduce them if they want to
increase the dividend payment. The promoter‘s holdings in companies should be more
than it will increase dividend. Companies should pay more dividends for the satisfaction
of investors The management replied that they will think over the suggestions offered by
researcher in effectively operation of company and implementation of policy on the
related issues depends upon the result of discussion among the top executives of an
organization

87
BIBLIOGRAPHY

88
 Bibliography

BOOKS

1. Sekran Uma,(Fourth Edition) , ―Research Methods for Business‖ (pgno:-21-23)

2. NargundkarRajendra(4thedition), ―Marketing Research‖(pgno:-35-42)
3. Cooper R. Donald,,(2nd revised edition) ―Business Research Methods‖pgno:-56-
60
4. Mittal R.K., (Edition-6th) ―Management Accounting & Financial
Management‖(pgno:-134-145).
5. James C. Van Horne, (Edition 11th) ―Financial Management Policy‖(pgno:-45-56)
6. Gupta Shashi K. and Sharma R. K., (Edition-6th) ―Management
Accounting‖‖(pgno:-156-134)
7. Kothari C.R., (II Revised Edition),―Research Methodology Methods and
Techniques‖.‖(pgno:-67-76)
8. Chandra Prasanna, (7th Edition) ,―Financial Management‖‖(pgno:-23-35)
9. This book is referred to study the dividend policy.‖(pgno:-89-96)
10. Goel D.K Goel Rajesh, (2008 Edition),―Management Accounting and Finance
Management.‖(pgno:-167-174)
11. Pandey I.M., (Edition-3rd) ,―Financial Management‖(pgno:-98-106)
12. Jain T.R. and Aggarwal S.C., (Edition-3rd) ―Statistics for MBA‖.‖(pgno:-178-186)
13. Bhalla V.K, (Edition-9th) ,“Working capital management”. ‖(pgno:-23-39)

JOURNALS :
14. Sujatakapoor, (2002),‖ Dividend Policy Determinants of Indian Services Sector:
A Factorial Analysis‖Paradigm”
15. Linda Allen, AronGottesman, AnthonySaunders, and Yi Tang (2002)―the Role of
Banks in Dividend Policy”Financial Management”
16. Y. Braouezec& C.-A. Leally,(2010) , ―Corporate Liquidity, Dividend Policy and
Default Risk”;International Journal of Theoretial and Applied Finance
17. Bill B. Francis, IftekharHassan, Kose John, and Liang Song ,(2011) ,‖ Corporate
Governance and Dividend Payout Policy” Financial Management
18. Jeffrey R. Brown and Scott ( 2012) , ―Executive Financial Incentives and Payout
89
19. Policy: Firm Responses to the 2003 Dividend tax cut‖The journal of finance; ―,

20. Bo Becker is at Harvard .ZoranIvkovi´ , (2011) , ―Local Dividend Clientele”, The

journal of finance‖
21. HARRY DEANGELO and LINDA DEANGELO ,(1990), ―Dividend Policy and Financial
Distress” The journal of finance‖
22. Fodil Adjaoud and Walid Ben-Ama,(2010) Corporate Governance and
DividendPolicy: Shareholders‘ Protection or Expropriation,‖ Journal of Business
Finance & Accounting”,
23. http://en.wikipedia.org/wiki/dividend(30)
24. http://en.wikipedia.org/wiki/dividendpolicy(40)
25. http://www.capitaline.com/user/bhartiairtel/keyratio.=1
26. http://www.capitaline.com/user/VODAFONE IDEA LIMITED/keyratio.=1
27. http://www.capitaline.com/user/RELIANCE JIO /keyratio.=1
28. http://www.moneycontrol.com/stocks/stock_market/corp_notices.php?autono=28
1629(40
29. http://www.moneycontrol.com/india/stockpricequote/computers-
software/VODAFONE IDEA LIMITED-consultancy-services/TCS
30. http://www.moneycontrol.com/financials/bharti airtel/balance-sheet/MM(34),
31. http://www.moneycontrol.com/financials/VODAFONE IDEA
LIMITEDcommunication/balance-sheet/MS24(35),
32. http://www.moneycontrol.com/financials/RELIANCE JIO /balance-sheet/NC9(36),
33. http://en.wikipedia.org/wiki/Bharti_Airtel
34. http://www.moneycontrol.com/stocksmarketsindia/
35. http://www.moneycontrol.com/india/stockpricequote/telecommunicationsservice/
bhartiairtel/BA08
36. http://www.moneycontrol.com/india/stockpricequote/telecommunicationsservice/
VODAFONE IDEA LIMITED/BA08
37. http://www.moneycontrol.com/india/stockpricequote/telecommunicationsservce/R
ELIANCE JIO /BA07
38. http://en.wikipedia.org/wiki/Bharti_Airtel
39. http://en.wikipedia.org/wiki/VODAFONE IDEA LIMITED
40. http://en.wikipedia.org/wiki/RELIANCE JIO

90
 ANNEXURE

FINANCE - BALANCE SHEET - Bharti Airtel Ltd (Curr: Rs in Cr.)

201903 201803 201703 201603 201503

SOURCES OF FUNDS :
Share Capital 1898.80 1898.80 1898.80 1898.24 1897.91
Reserves Total 47530.80 42212.80 34652.30 25745.43 18342.35
Equity Share Warrants 0.00 0.00 0.00 0.00 0.00
Equity Application Money 0.00 0.00 186.10 0.29 1.23
Total Shareholders Funds 49429.60 44111.60 36737.20 27643.96 20241.49
Secured Loans 2.90 17.10 39.40 51.73 52.42
Unsecured Loans 15298.50 11880.40 4999.50 7661.92 6517.92
Total Debt 15301.40 11897.50 5038.90 7713.65 6570.34
Other Liabilities 2658.90 2613.40 0.00 0.00 0.00

Total Liabilities 67389.90 58622.50 41776.10 35357.61 26811.83

APPLICATION OF FUNDS :
Gross Block 66906.80 61437.40 44212.50 37266.70 28115.65
Less : Accumulated Depreciation 26466.00 20736.70 16187.50 12253.34 9085.00
Less:Impairment of Assets 0.00 0.00 0.00 0.00 0.00
Net Block 40440.80 40700.70 28025.00 25013.36 19030.65
Lease Adjustment 0.00 0.00 0.00 0.00 0.00
Capital Work in Progress 4466.50 6479.20 1594.70 2566.67 2751.08
Producing Properties 0.00 0.00 0.00 0.00 0.00
Investments 12337.80 11813.00 15773.30 11777.76 10952.85
Current Assets, Loans & Advances
Inventories 32.10 34.40 27.20 62.15 56.86
Sundry Debtors 2134.50 1461.90 2105.00 2550.05 2776.46
Cash and Bank 481.20 133.20 816.70 2251.60 502.94
Loans and Advances 10862.10 3573.10 6381.00 4561.21 2923.61
Total Current Assets 13509.90 5202.60 9329.90 9425.01 6259.87
Less : Current Liabilities and Provisions
Current Liabilities 11540.10 11905.10 12284.80 13117.98 11909.07
Provisions 557.00 527.40 658.70 634.40 209.88
Total Current Liabilities 12097.10 12432.50 12943.50 13752.38 12118.95
Net Current Assets 1412.80 -7229.90 -3613.60 -4327.37 -5859.08
Miscellaneous Expenses not written off 0.00 0.00 0.00 0.08 0.20
Deferred Tax Assets 1078.00 780.90 796.30 917.31 436.30
Deferred Tax Liability 1914.70 1308.50 799.60 590.20 500.17
Net Deferred Tax -836.70 -527.60 -3.30 327.11 -63.87
Other Assets 9568.70 7387.10 0.00 0.00 0.00

Total Assets 67389.90 58622.50 41776.10 35357.61 26811.83

Contingent Liabilities 54144.10 50037.00 5396.40 3241.16 2148.87

91
FINANCE - BALANCE SHEET - VODAFONE IDEA LIMITEDs Ltd (Curr: Rs in Cr.)

201903 201803 201703 201603 201503

SOURCES OF FUNDS :
Share Capital 285.00 285.00 285.00 285.00 285.00
Reserves Total 6851.97 6722.48 6995.78 6513.05 6262.34
Equity Share Warrants 0.00 0.00 0.00 0.00 0.00
Equity Application Money 0.00 0.00 0.00 0.00 0.00
Total Shareholders Funds 7136.97 7007.48 7280.78 6798.05 6547.34
Secured Loans 443.54 441.45 1281.76 1288.82 0.00
Unsecured Loans 507.29 964.98 1357.15 1039.05 777.80
Total Debt 950.83 1406.43 2638.91 2327.87 777.80
Other Liabilities 511.76 431.52 0.00 0.00 0.00

Total Liabilities 8599.56 8845.43 9919.69 9125.92 7325.14

APPLICATION OF FUNDS :
Gross Block 8821.09 8190.01 6820.94 5890.00 4352.65
Less : Accumulated Depreciation 4069.09 3384.82 2316.14 1792.06 1363.75
Less:Impairment of Assets 0.00 0.00 0.00 0.00 0.00
Net Block 4752.00 4805.19 4504.80 4097.94 2988.90
Lease Adjustment 0.00 0.00 0.00 0.00 0.00
Capital Work in Progress 303.34 220.22 386.15 536.38 543.77
Producing Properties 0.00 0.00 0.00 0.00 0.00
Investments 1788.27 1832.82 2501.30 2723.67 2103.77
Current Assets, Loans & Advances
Inventories 0.45 5.34 1.25 1.64 5.46
Sundry Debtors 709.94 612.62 632.29 1343.22 1063.13
Cash and Bank 53.32 430.77 110.86 372.37 79.63
Loans and Advances 630.47 534.80 3946.98 3080.13 2879.51
Total Current Assets 1394.18 1583.53 4691.38 4797.36 4027.73
Less : Current Liabilities and Provisions
Current Liabilities 2291.94 2386.48 1814.16 2607.49 1994.91
Provisions 99.25 94.07 174.67 288.69 259.99
Total Current Liabilities 2391.19 2480.55 1988.83 2896.18 2254.90
Net Current Assets -997.01 -897.02 2702.55 1901.18 1772.83
Miscellaneous Expenses not written off 0.00 0.00 0.00 0.00 0.00
Deferred Tax Assets 227.80 131.14 95.40 128.38 126.14
Deferred Tax Liability 244.22 257.07 270.51 261.63 210.27
Net Deferred Tax -16.42 -125.93 -175.11 -133.25 -84.13
Other Assets 2769.38 3010.15 0.00 0.00 0.00

Total Assets 8599.56 8845.43 9919.69 9125.92 7325.14

Contingent Liabilities 13872.88 11032.37 9145.97 7805.14 10858.73

92
FINANCE - BALANCE SHEET - RELIANCE JIO (Curr: Rs in Cr

201903 201803 201703 201603 201503

SOURCES OF FUNDS :
Share Capital 630.00 630.00 630.00 630.00 630.00
Reserves Total 1906.70 6016.48 8818.40 11429.37 11291.36
Equity Share Warrants 0.00 0.00 0.00 0.00 0.00
Equity Application Money 0.00 0.00 0.00 0.00 0.00
Total Shareholders Funds 2536.70 6646.48 9448.40 12059.37 11921.36
Secured Loans 9647.49 4475.68 0.00 0.00 0.00
Unsecured Loans 0.00 2980.00 0.00 0.00 0.00
Total Debt 9647.49 7455.68 0.00 0.00 0.00
Other Liabilities 11139.76 9975.24 0.00 0.00 0.00

Total Liabilities 23323.95 24077.40 9448.40 12059.37 11921.36

APPLICATION OF FUNDS :
Gross Block 30117.01 29377.98 28275.76 16293.27 15842.58
Less : Accumulated Depreciation 14356.83 13054.95 11720.79 10009.44 9522.78
Less:Impairment of Assets 0.00 0.00 0.00 0.00 0.00
Net Block 15760.18 16323.03 16554.97 6283.83 6319.80
Lease Adjustment 0.00 0.00 0.00 0.00 0.00
Capital Work in Progress 896.99 1153.82 1177.96 950.48 964.99
Producing Properties 0.00 0.00 0.00 0.00 0.00
Investments 491.98 494.66 509.54 465.09 557.39
Current Assets, Loans & Advances
Inventories 134.46 153.14 188.61 222.64 191.10
Sundry Debtors 328.83 339.06 720.04 782.47 941.80
Cash and Bank 86.84 140.14 4876.44 4803.37 3369.93
Loans and Advances 1135.53 1324.12 10811.60 9868.32 9689.79
Total Current Assets 1685.66 1956.46 16596.69 15676.80 14192.62
Less : Current Liabilities and Provisions
Current Liabilities 2779.84 2858.79 17094.45 4835.26 4309.30
Provisions 837.25 535.79 8296.31 6222.96 5476.79
Total Current Liabilities 3617.09 3394.58 25390.76 11058.22 9786.09
Net Current Assets -1931.43 -1438.12 -8794.07 4618.58 4406.53
Miscellaneous Expenses not written off 0.00 0.00 0.00 96.69 159.17
Deferred Tax Assets 0.00 0.00 0.00 940.12 830.18
Deferred Tax Liability 0.00 0.00 0.00 1295.42 1316.70
Net Deferred Tax 0.00 0.00 0.00 -355.30 -486.52
Other Assets 8106.23 7544.01 0.00 0.00 0.00

Total Assets 23323.95 24077.40 9448.40 12059.37 11921.36

Contingent Liabilities 3193.26 3026.89 3751.13 2576.60 2911.79

93
FINANCE - PROFIT AND LOSS - Bharti Airtel Ltd (Curr: Rs in Cr.)

201903 (12) 201803 (12) 201703 (12) 201603 (12) 201503 (12)
INCOME :
Sales Turnover 41603.80 38017.70 35609.50 34014.29 25703.51
Excise Duty 0.00 0.00 0.00 0.00 0.00
Net Sales 41603.80 38017.70 35609.50 34014.29 25703.51
Other Income 624.70 321.20 377.30 525.14 359.91
Stock Adjustments 0.00 0.00 -35.00 5.29 9.05

Total Income 42228.50 38338.90 35951.80 34544.72 26072.47

EXPENDITURE :
Raw Materials 18.30 16.10 35.00 125.09 155.30
Power & Fuel Cost 2972.70 2523.30 2265.00 2173.30 1045.16
Employee Cost 1391.50 1451.20 1525.60 1404.54 1306.57
Other Manufacturing Expenses 12547.00 10868.60 9888.50 13049.37 8184.32
Selling and Administration Expenses 10408.60 9451.10 7620.60 3766.89 3718.17
Miscellaneous Expenses 622.00 367.10 741.60 616.74 1028.47
Less: Pre-operative Expenses Capitalised 0.00 0.00 49.70 107.40 112.40

Total Expenditure 27960.10 24677.40 22026.60 21028.53 15325.59

Operating Profit 14268.40 13661.50 13925.20 13516.19 10746.88

Interest 1396.20 324.10 -568.00 2148.38 607.76
Gross Profit 12872.20 13337.40 14493.20 11367.81 10139.12
Depreciation 5916.00 4611.60 3793.90 3206.28 3166.58
Profit Before Tax 6956.20 8725.80 10699.30 8161.53 6972.54
Tax 917.10 484.60 942.70 777.73 859.36
Fringe Benefit tax 0.00 0.00 0.00 35.87 37.23
Deferred Tax 309.10 524.30 330.40 -395.91 -168.24
Reported Net Profit 5730.00 7716.90 9426.20 7743.84 6244.19
Extraordinary Items 40.57 96.68 130.76 212.46 48.38
Adjusted Net Profit 5689.43 7620.22 9295.44 7531.38 6195.81

Adjst. below Net Profit 0.00 0.00 0.00 5.50 -22.25

P & L Balance brought forward 33482.00 26778.50 18502.80 11797.22 5533.92
Statutory Appropriations 0.00 0.00 0.00 0.00 0.00
Appropriations 868.20 1013.40 1150.50 1043.73 -41.36
P & L Balance carried down 38343.80 33482.00 26778.50 18502.83 11797.22

Dividend 379.80 379.80 379.80 379.65 0.00

Preference Dividend 0.00 0.00 0.00 0.00 0.00
Equity Dividend % 20.00 20.00 20.00 20.00 0.00
Dividend Per Share(Rs) 1.00 1.00 1.00 2.00 0.00
Earnings Per Share-Unit Curr 14.93 20.16 24.65 40.45 32.90
Earnings Per Share(Adj)-Unit Curr 14.93 20.16 24.65 20.23 16.45
Book Value-Unit Curr 130.15 116.15 96.24 145.62 106.63
Book Value(Adj)-Unit Curr 130.15 116.15 96.24 72.81 53.31

94
FINANCE - PROFIT AND LOSS - VODAFONE IDEA LIMITEDs Ltd (Curr: Rs in
Cr.)

201903 (12) 201803 (12) 201703 (12) 201603 (12) 201503 (12)
INCOME :
Sales Turnover 4091.77 3611.77 3218.04 3749.43 3283.30
Excise Duty 0.00 0.00 0.00 0.00 0.00
Net Sales 4091.77 3611.77 3218.04 3749.43 3283.30
Other Income 179.10 194.75 383.70 578.45 182.03
Stock Adjustments 0.00 0.00 0.00 0.00 0.00

Total Income 4270.87 3806.52 3601.74 4327.88 3465.33

EXPENDITURE :
Raw Materials 0.00 0.00 0.00 0.00 0.00
Power & Fuel Cost 130.32 127.72 107.72 90.87 63.12
Employee Cost 622.24 520.46 416.67 353.74 240.90
Other Manufacturing Expenses 1915.19 1714.84 1575.27 1946.71 1990.60
Selling and Administration Expenses 294.40 280.11 242.21 269.72 203.13
Miscellaneous Expenses 141.65 137.77 129.73 337.48 176.69
Less: Pre-operative Expenses Capitalised 0.00 0.00 0.00 0.00 0.00

Total Expenditure 3103.80 2780.90 2471.60 2998.52 2674.44

Operating Profit 1167.07 1025.62 1130.14 1329.36 790.89

Interest 194.87 211.93 246.08 190.60 39.60
Gross Profit 972.20 813.69 884.06 1138.76 751.29
Depreciation 707.08 659.65 574.73 425.27 301.31
Profit Before Tax 265.12 154.04 309.33 713.49 449.98
Tax 139.27 68.08 -215.71 150.36 114.15
Fringe Benefit tax 0.00 0.00 0.00 5.50 4.72
Deferred Tax -45.49 -76.60 41.86 41.68 26.65
Reported Net Profit 171.34 162.56 483.18 515.95 304.46
Extraordinary Items 20.68 -8.79 165.58 207.26 4.32
Adjusted Net Profit 150.66 171.35 317.60 308.69 300.14

Adjst. below Net Profit 0.00 -291.51 0.00 -4.72 28.25

P & L Balance brought forward 1411.24 2179.40 2099.38 1892.30 1742.91
Statutory Appropriations 0.00 0.00 0.00 0.00 0.00
Appropriations 589.46 639.21 403.16 304.15 183.32
P & L Balance carried down 993.12 1411.24 2179.40 2099.38 1892.30

Dividend 57.00 57.00 0.00 128.25 128.25

Preference Dividend 0.00 0.00 0.00 0.00 0.00
Equity Dividend % 20.00 20.00 0.00 45.00 45.00
Dividend Per Share(Rs) 2.00 2.00 0.00 4.50 4.50
Earnings Per Share-Unit Curr 5.77 5.38 16.95 17.34 9.92
Earnings Per Share(Adj)-Unit Curr 5.77 5.38 16.95 17.34 9.92
Book Value-Unit Curr 250.42 245.88 255.47 238.53 229.73
Book Value(Adj)-Unit Curr 250.42 245.88 255.47 238.53 229.73

95
FINANCE - PROFIT AND LOSS - RELIANCE JIO (Curr: Rs in Cr.)

201903 (12) 201803 (12) 201703 (12) 201603 (12) 201503 (12)
INCOME :
Sales Turnover 3373.25 3673.95 3656.10 4456.00 4722.52
Excise Duty 0.00 0.00 0.00 0.00 0.00
Net Sales 3373.25 3673.95 3656.10 4456.00 4722.52
Other Income 251.17 319.61 1401.72 1049.49 804.01
Stock Adjustments 0.00 0.00 0.00 0.00 0.00

Total Income 3624.42 3993.56 5057.82 5505.49 5526.53

EXPENDITURE :
Raw Materials 0.00 0.00 0.00 0.00 0.00
Power & Fuel Cost 213.53 202.23 219.44 183.06 188.34
Employee Cost 4141.39 3732.59 5536.59 2479.56 1913.89
Other Manufacturing Expenses 854.75 909.26 1068.12 1340.52 1383.45
Selling and Administration Expenses 262.71 301.05 347.60 395.32 449.44
Miscellaneous Expenses 307.22 273.51 187.25 277.46 348.54
Less: Pre-operative Expenses Capitalised 491.19 513.80 607.87 383.71 275.43

Total Expenditure 5288.41 4904.84 6751.13 4292.21 4008.23

Operating Profit -1663.99 -911.28 -1693.31 1213.28 1518.30

Interest 949.57 451.95 1.26 1.15 2.78
Gross Profit -2613.56 -1363.23 -1694.57 1212.13 1515.52
Depreciation 1496.22 1410.15 1759.49 698.85 704.06
Profit Before Tax -4109.78 -2773.38 -3454.06 513.28 811.46
Tax 0.00 28.54 -487.79 426.30 352.39
Fringe Benefit tax 0.00 0.00 0.00 6.48 6.14
Deferred Tax 0.00 0.00 -355.30 -131.22 -133.96
Reported Net Profit -4109.78 -2801.92 -2610.97 211.72 586.89
Extraordinary Items -14.58 -7.51 -131.14 68.84 42.89
Adjusted Net Profit -4095.20 -2794.41 -2479.83 142.88 544.00

Adjst. below Net Profit 0.00 0.00 0.00 0.00 0.00

P & L Balance brought forward -4916.13 -2353.01 0.00 0.00 0.00
Statutory Appropriations 0.00 0.00 0.00 0.00 0.00
Appropriations -18.98 -238.80 -257.96 211.72 586.89
P & L Balance carried down -9006.93 -4916.13 -2353.01 0.00 0.00

Dividend 0.00 0.00 0.00 63.00 252.00

Preference Dividend 0.00 0.00 0.00 0.00 0.00
Equity Dividend % 0.00 0.00 0.00 10.00 40.00
Dividend Per Share(Rs) 0.00 0.00 0.00 1.00 4.00
Earnings Per Share-Unit Curr 0.00 0.00 0.00 3.19 8.64
Earnings Per Share(Adj)-Unit Curr 0.00 0.00 0.00 3.19 8.64
Book Value-Unit Curr 40.27 105.50 149.97 191.42 189.23
Book Value(Adj)-Unit Curr 40.27 105.50 149.97 191.42 189.23

96