Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
PROFESSIONAL
University
SUBMITTED TO:
Mr.Sachin Chaturvedi
Branch Manager
TCISL
SUBMITTED BY:
Manisha narang
BBA(3rd SEM)
Lovely professional university
ACKNOWLEDGEMENT
2
TABLE OF CONTENTS
3
EXECUTIVE SUMMARY:
“It is not the cash that fuels the journey to the future, but
ultimately it’s the customers that can shape a company’s
future.”
The purpose of this report is to analyse the trends in the region regarding
the inclination of the customer towards new technology launched as well
as the distribution of the clients of TATA in comparison with other
competitors.
The basic objective of this report is to analyse the customer satisfaction
with TATA for their previous services.And the reasons behind such a
level of customer satisfaction.
After going through this report of mine the reader will be clear about all
the facts related with the customer services what TATA is providing to its
customers.
4
Beginning with a brief introduction to the industry and the role of TATA
in transforming the industry and the services in the country, the report
clearly shows that how TATA is contributing towards the economic
growth of the country. It gives a brief information about the TATA group
and its companies. This report discusses commendable and never stopping
improvement of TATA COMMUNICATIONS INTERNET SERVICES
LTD. From its glorious heritage to its current place in the market. Then
one can come to the structure of the organisation. The main emphasis in
this report is laid on the customer service department of TCISL. This
report can help the company to know and focus on the areas where they
need to improve as it discusses all the reasons behind all the problems.
The globalized business scene is getting complex day by day with mega
mergers, acquisitions, expansions and globalization becoming a part and
parcel of organization activity. and in such an era one really needs to take
care of customer satisfaction level of the company. The rule of a
successful business is:
To say all in one this report is a brief description of the services that
TATA is providing to their customers and what more should be done to
retain our customers. Adding more into this report it discusses many facts
and observations in concern of the new technology “WIMAX”.
5
Research Methodology:
For the purpose of presentation of the facts concluded herein, the
following methods were employed:
• Telephonic conversation with the customers
• Interviews with the employees
• Observation of the customer reactions as well as issues faced by
them from the point of view of the customer support executive as
well as attending the incoming customers and recording the
observations
• Calling the customers for retention was another activity that
Primary Objective:
competitors.
• To analyse the customer distribution across various business sectors
6
Scope of the Study:
The study will help us to reach conclusive results regarding the following
• Customer Satisfaction Level
• Various problems being faced by the customers
• Scope of improvement of Customer Support Issues
• Extent of Acceptance of WIMAX
• Main areas where most of the marketing resources should be
concentrated to market the new products effectively.
the customer.
• We are able to analyse the general trend in the consumers over the
three key locations covered. But the study cannot come up to any
conclusion regarding the causes of such trends.
• The study cannot deduce the extent of faithfulness of existing
customers who have provided a positive feedback to WIMAX.
7
INTRODUCTION TO THE INDUSTRY:
With the Telecom industry booming and with lots of players coming in
for this big industry in India, there is a fierce competition among all the
players. All are trying their means to grab the loyalty of the customer
through various means; differentiation is one of the key factors
8
Wireless dominance is the governing theme, with the wireless
subscriber base taking over the wireline subscriber base in 2008.
Increasingly, wireline subscribers are expected to cut the cord and
migrate to wireless, while new users will pick up the wireless as their
first phone. Wireless has been the principal growth engine. In the
context of wireline broadband the country is in infant stage and it is
only in the medium term that one expects the wireline broadband
services to take off.
The global wireless revolution has made its presence felt in India also.
Just like the other parts of the world it has been the principal engine
for growth in the telecom sector. In the last 3 years, two out of every
three new telephone subscribers were wireless subscribers. In fact, in
certain pockets of the country, the wireless subscribers already
outnumber the wireline subscribers, mirroring the global trend.
9
Road to Future:
The wireless revolution will increase its pace and the factors that have
been responsible for its growth will carry it further. The wireless data
services will act as a revenue stream for the wireless operators. With
further rollout of wireless broadband, backed by the provision of
compelling content services, broadband revenues will comprise a key
portion of the total telecom pie in the future.
10
Full Service Internet
Wireline Pay TV
Wireless
Wireless Wireline
11
INTRODUCTION OF TATA GROUP
Tata is a rapidly growing business group based in India with significant
international operations. The Group employs around 350,000 people
worldwide. The Tata name has been respected in India for 140 years for
its adherence to strong values and business ethics.
The major companies in the Group include Tata Steel, Tata Motors, Tata
Consultancy Services (TCS), Tata Power, Tata Chemicals, Tata Tea,
Indian Hotels and Tata Communications Internet services limited(TCISL).
12
MANAGEMENT OF TATA GROUP:
The Tata Group is headed by Group chairman Ratan Tata. The Group
Corporate Centre (GCC) is the top decision-making body of the Tata
Group. Each company has its own management.
Purpose:
At the Tata Group our purpose is to improve the quality of life of the
communities we serve. We do this through leadership in sectors of
national economic significance, to which the Group brings a unique set of
capabilities. This requires us to grow aggressively in focused areas of
business.
13
Integrity: We must conduct our business fairly, with honesty and
humanity for our colleagues and customers around the world, and
always work for the benefit of the communities we serve.
Excellence: We must constantly strive to achieve the highest
Group and with our customers and partners around the world,
building strong relationships based on tolerance, understanding and
mutual cooperation.
Responsibility: We must continue to be responsible, sensitive to
14
ITS COMPANIES
Promoter companies
Global operations
Seven business sectors
Promoter companies
Tata Sons
Tata Financial Services
Tata Quality Management Services
Tata Industries
Tata Interactive Systems
Tata Strategic Management Group
15
Global operations
Tata Africa Holdings
Tata AG
Tata Enterprises AG
Tata Incorporated
Tata International
Tata International AG
Tata Limited
ENGINEERING:
Automotive:
Tata Auto Comp Systems Tata Motors
Engineering Services:
Tata Projects
Voltas
Engineering Products:
TAL Manufacturing Solutions
TRF
16
MATERIALS:
Composites:
Tata Advanced Materials
Metals:
Tata steel
ENERGY:
Power:
Tata BP Solar India
Tata Power
CHEMICALS:
Pharma:
Rallis India
Tata Chemicals
Tata Pigments
SERVICES:
Other Services:
17
Tata Services
CONSUMER PRODUCTS
Tata Tea
Tata Ceramics
Tata McGraw Hill Publishing Company
Titan Industries
Communications:
Tata Sky
Tata Teleservices
Tatanet
18
GLORIOUS HERITAGE OF TATA
COMMUNICATIONS INTERNET
SERVICES LIMITED:
In 1932 the two merged to form Indian Radio and Cable Communications
Co. (IRCC).
In 2002 The Indian Government privatized VSNL. Tata Group holds 46%
stake in VSNL, The Indian government holds 26% stake.
19
COMPANY’S PROFILE:
Tata Communications became the unified global brand for VSNL, VSNL
International, Teleglobe, Tata Indicom Enterprise Business Unit and
20
CIPRIS in February, 2008. The company is now the number one global
international wholesale voice operator and number one provider of
international long distance, enterprise data and internet services in India.
The Tata global network encompasses one of the most advanced and
largest submarine cable networks, a Tier-1 IP network, connectivity to
more than 200 countries across 300 PoPs and more than one million
square feet data centre space.
21
Becoming the leading integrated provider to drive and deliver a new
world of communications, Tata Communications Internet services limited
became the unified global brand for VSNL, VSNL International,
Teleglobe, Tata Indicom Enterprise Business Unit and CIPRIS on
February 13, 2008.
Broadband services:
• Speed DSL internet service plan — the first choice for high-speed
internet connectivity with a pay-as-you-use tariff plan.
• Value internet service plan — connects customers on 1:4
compressed internet bandwidth with flat-rate billing.
• Gold internet service plan — connects customers on 1:1 dedicated
premium internet bandwidth with flat-rate billing.
Areas of business:
The Tata Communications Internet services limited portfolio for global
and Indian enterprises and service providers includes:
22
• Transmission
• Internet protocol (IP)
• Converged voice, mobility, managed network connectivity
• Hosted data centre
• Communications solutions
• Business transformation services
Location
Vision
23
Commitment
Strategy
24
ORGANISATIONAL STRUCTURE:
Mr. Sachin
Chaturvedi
(BranchManager)
Customer Service
Technical Retention and Department
Sales Department
Department Revenue Department
Vikas Kapoor
Mr Anuj Mr. Lovkesh Wasan Mr. Varun Sharma
(Territory Network
(DST) (Team Leader R&R) (CS Executive0
Manager)
25
A successful business:
The purpose of a business is to create and keep a customer. If a business
successfully creates and keeps customers in a cost-effective way, it will
make a profit while continuing to survive and thrive. If, for any reason, a
business fails to attract or sustain a sufficient number of customers, it
will experience losses. Too many losses will lead to the demise of the
enterprise.
The quality and level of customer service has decreased in recent years,
which can be attributed to a lack of support or understanding at the
executive and middle management levels of a corporation.
26
EXPERIENCE OF CUSTOMERS
WITH THE WIRELINE
NETWORK:
The experience of customers was not upto the satisfactory level.it was
below the satisfaction level of customers.customers faced alot of
problems due to:
And the two merits of tata’s connection are customers never face any
problems regarding speed and installation time.the company takes hardly
3 days for installation which other companies never provides.
Some other issues which were analysed after calling customers were:
a) The plans were not customised as per customers
need.
b) Plans are costly.
27
DIAGRAMATIC REPRSENTATION OF
CUSTOMERS PROBLEMS :
DIFFERENT
TYPES OF
COMPLAINTS
28
Customer care at TCISL:
Process of resolution of customer’s complaints
regarding connectivity issues:
Technical
Department/
Reverted to
Customer billing Assigned to
technical team
care department field
by field
department engineers
engineers
Back to Resolution
Call is made Complaint is customer care remarks
to customer closed for updated by
confirmation technical
department
Complaint
not resolved
then it is re-
escalated.
The process starts with customer care department. The complaints of the
customer are registered in their respective login Id’s in their accounts.
Then it is sent to technical department or technical team through mails.
The customer’s complaint is mailed to technical department by customer
care department. And then it is assigned to field engineers by the technical
team to resolve the problem of customer. Further after the resolution of
problem field engineers revert to technical team and report to technical
team in the office telephonically. Next step is of technical department to
update the resolution remarks in their systems. Once the remarks are
updated it is mailed to customer service department. And finally the
complaint is closed in the customer’s account by customer care
department. Then therapy calling is done to customer to know whether
his\her complaint is solved. And in case of any troubles at customers end
the case of the customer is again re-escalated and then the same procedure
is followed.
29
Process of resolution of customers complaint
regarding billing issues:
Back to
If not resolved
Call is made Complaint is customer care
complaint is
to customer. closed. for
reescalated.
confirmation
30
Process of resolution of customers complaint
regarding some other issues (E-mail
configuration,outlook problem and many more)
Customer Assigned to
Complaint is Remarks are
service related
resolved updated.
department. departments
The process for resolution for other issues are again firstly registered with
customer care department in customers login id’s.Then the customer care
department assigns the cases to the respective departments with whom the
problems are related.The particular departments then resolves the problem
of the customers and again the remarks are updated.Remarks are then
forwarded to customer care department.Finally the complaint is
closed.and similarly if the problem is not resolved it is reescalated like
other issues.
31
CERTAIN SUGGESTIONS
32
3. Be Friendly and Approachable
These little niceties can be time consuming and aren't always cost
effective, but this one small thing but having a greater impact on
customer can be taken into consideration.
It shows that the company cares for its customers, it shows there
are real people on the other end of that screen or telephone,and
most importantly, it makes the customer feel welcomed, wanted
and valued.
33
The simple message: when you promise something, deliver. The
most common example is their problem resolution dates.
8.Insufficient manpower:
9. Technical Backwardness
Competitors are employing certain small and very cost effective measures
to reduce the interruptions due to installation faults. For example, some
measures like
34
Such measures may also add to a number of reduced complaints and
satisfied customers and should be encouraged.
Conclusion
Customer service, like any aspect of business, is a practiced art that
takes time and effort to master. The company can think from the
point of view of customers.What would the company want from
their business if they were the client? How would the company
want to be treated? Treat customers like friends and they'll always
come back.
35
Tata Communications Rolls Out World's
Largest Commercial WiMAX Network
with Telsima
36
WI-MAX:
WIMAX, the Worldwide Interoperability for Microwave Access, is a
telecommunications technology that transfers data wirelessly over long
distances and is seen as an alternative to cable linkages.
Uses
The bandwidth and reach of Wi Max make it suitable for the following
potential applications:
37
wireless connectivity and the Internet. Despite this, the two standards are
aimed at different applications.
38
• WiMAX is highly scalable from what are called "femto"-scale
remote stations to multi-sector 'maxi' scale base that handle
complex tasks of management and mobile handoff functions and
include MIMO-AAS smart antenna subsystems.
Due to the ease and low cost with which Wi-Fi can be deployed, it is
sometimes used to provide Internet access to third parties within a single
room or building available to the provider, often informally, and
sometimes as part of a business relationship. For example, many coffee
shops, hotels, and transportation hubs contain Wi-Fi access points
providing access to the Internet for customers.
39
In practical terms, WiMAX would operate similar to WiFi but at higher
speeds, over greater distances and for a greater number of users. WiMAX
could potentially erase the suburban and rural blackout areas that
currently have no broadband Internet access because phone and cable
companies have not yet run the necessary wires to those remote locations.
40
What this points out is that WiMAX actually can provide two forms of
wireless service:
41
of serving the latest demands. Conversely, WiMax is a globally
accepted, technically capable, and industry-wide supported
standard. The emergence of WiMax has opened up the solution to
many of the problems faced by Wi-Fi because, WiMax uses non-
line-of-sight standard and can cover tens of miles unlike Wi-Fi that
is restrictive to the surroundings and resources. WiMax
complements Wi-Fi because it uses the same Logical Link
Controller standard (IEEE 802.2) that enables both bridging and
routing. It is also compatible to the existing Wi-Fi hotspots to the
internet and also provides wireless solution for last mile access to
cable and DSL. This is a tremendous advantage that WiMax has in
order to capture the market.
42
Customer Acceptance Survey
Acceptance in Chandigarh:
Sample Size: 2884
Client Distribution Graph (By Business Category)
2500
1939
2000
1500
1000 781
500
1 77 74 1 1 10
0
AL
IL
L
RS
E
IT
CY
M
NA
SM
TA
CO
IC
HE
EN
IO
RE
ED
LE
OT
AG
AT
TE
UC
D
AD
ED
Acceptance/Interest Expressed:
12 11
10
8
6
4 3
2 1 1
0 0 0 0
0
RS
L
IT
IL
E
M
CY
AL
NA
SM
TA
CO
HE
IC
EN
RE
ED
OT
LE
AG
TI
TE
M
CA
D
U
AD
ED
43
Observations:
1. A major section of the customers (SME’s and Retail) are less
inclined WIMAX with percentage acceptance being as low as 0.56
% and 0.4% for SME’s and retail respectively.
2. Acceptance is high among (Almost Three Times) in IT and
Education sector. (1.5 % Accepted the new technology)
1200 1118
1000
800
600
375
400
195
144
200 61
24 8 14
0
AIRTEL BSNL TATA RELIANCE CONNECT SIFY OTHERS NON USERS
6
5
5
4
3
2 2
2
1 1
1
0 0 0
0
AIRTEL BSNL TATA RELIANCE CONNECT SIFY OTHERS NONUSERS
44
Observations:
1. Rate of Acceptance is (mostly) directly proportional to the number
ACCEPTANCE IN MOHALI
Client Distribution Graph (By Business Category)
800 711
700
600
500
400 312
300
200
100 30 48
3
0
SME EDUCATIONAL IT RETAIL OTHERS
ACCEPTANCE:
14
12
12
10
8
6
4
4
2 1
0 0
0
SME EDUCATIONAL IT RETAIL OTHERS
45
Observations:
1. Opposed to the trend in Chandigarh, The acceptance level in
Mohali is generally high in SME’s and Retail sectors (Being 1.54%
and 2.08% as compared to 0.5% and 0.4% in Chandigarh
respectively).
2. Again opposed to Chandigarh trend, The IT and Education sector is
not interested in WIMAX technology.
700
597
600
500
400
300 219 193
200
100 42 16 32
2 3
0
AIRTEL BSNL TATA RELIANCE CONNECT SIFY OTHERS NONUSERS
Acceptance/Interested:
9 8
8
7
6 5
5 4
4
3
2 1 1
1 0 0 0
0
AIRTEL BSNL TATA RELIANCE CONNECT SIFY OTHERS NONUSERS
Observations:
46
1. Company wise Acceptances analysis suggests that a customers
47
PANCHKULA REGION:
Sample Size: 893
Customer Distribution by Business
700
601
600
500
400
300
178
200
101
100
9 4
0
SME EDUCATIONAL IT RETAIL OTHERS
18 17
16
14
12
10
8
6
4
2 1 1
0 0
0
SME EDUCATIONAL IT RETAIL OTHERS
Observations:
1. Similar to the trend in Chandigarh, the SME’s and retail businesses
are not that much inclined to the new technology (Between 0.56%
to 0.99%)
2. There is a high rate of acceptance in ‘others’ section (Above to 2.8
48
Company Wise Acceptance:
Company Wise Customer Distribution:
800 714
700
600
500
400
300
200
93
100 28 24 10 23 3
0
AIRTEL BSNL TATA RELIANCE CONNECT SIFY OTHERS
9 8
8
7
6
5 4 4
4
3 2 2
2 1
1 0
0
AIRTEL BSNL TATA RELIANCE CONNECT SIFY OTHERS
Observations:
1. Here the rate of acceptance of TATA’s offer is relatively high.
49
Summary
Chandigarh, Mohali, Pachkula:
Sample Size: 4871
Client Distribution Chart (By Business)
2828
3000
2500
2000
1500
930 923
1000
500 1 116 81 1 1
0
RS
L
IT
IL
E
M
CY
AL
NA
SM
TA
CO
HE
IC
EN
RE
ED
OT
LE
AG
TI
TE
M
CA
D
U
AD
ED
Client Acceptance
30
24
25 21
20
15
10 5
5 0 1 1 0 0
0
RS
L
IT
E
IL
M
CY
AL
NA
SM
TA
CO
HE
IC
EN
RE
ED
LE
OT
AG
TI
TE
M
CA
D
U
AD
ED
Percent Acceptance
2.5 2.275
2
1.5 1.2
0.84 0.86
1 0.53
0.5
0 0 0
0
RS
L
IT
E
IL
M
CY
AL
NA
SM
TA
CO
HE
IC
EN
RE
ED
OT
LE
AG
TI
TE
M
CA
D
U
AD
ED
50
2000
1715
1500
1000 731
622
481
500
210
50 116
13
0
AIRTEL BSNL TATA RELIANCE CONNECT SIFY OTHERS NON
USERS
18 17
16
14
12 10
10 9
8 7
6 4
4 2 2
2 0
0
AIRTEL BSNL TATA RELIANCE CONNECT SIFY OTHERS NON
USERS
4.5 4
4 3.44
3.5
3 2.73
2.5 2.08
2
1.5 1.23
0.95
1 0.41
0.5 0
0
AIRTEL BSNL TATA RELIANCE CONNECT SIFY OTHERS NONUSERS
51
Observations and Final Conclusions/Suggestions
• One stark observation is that the overall percentage acceptance of
TATA’s new technology is extremely low. Refer to the following:
o Chandigarh Area : 0.56 % of a sample of 2881
o Mohali Area : 1.44 % of a sample of 1104
o Panchkula Area : 2.12 % of a sample of 893
• As observed from the Final Summary Chart for all three regions, it
is evident that the customer base is NOT concentrated in the
Retail/SME’s/IT or Medical and Education only. Rather majority of
the customers are from the ‘others’ section that includes businesses
other than the ones mentioned. Hence these other sectors also need
to be targeted for prospective customers of WIMAX technology.
• Existing Airtel, Reliance and Connect customers show more
willingness to accept the new technology as evident from the final
acceptance values of 2.73, 3.44 and 2.08 percent respectively.
• Existing Panchkula customers show a very high rate of acceptance
(airtel -14.28%, BSNL – 8.33%, Reliance – 8.69 %, Connect –
4.30% ) for the wireless technology.
• Another section of grave concern is the lean percentage of TATA
customers among the sample data which comes out to be only
2.24% as against 27.89% Airtel, 21.64% Connect, 9.44% BSNL,
Reliance 5.21% and ‘Others’ 32.88% (includes Hutch, Glide,
hatchway and lease-line providers). This leaves little scope for
success of a new technology with the existing customer base. So
most of the marketing methodologies will have to concentrate on
competitors’ customer base.
• Further, more intriguing conclusions may be deduced from the
following calculations done on the basis of above findings:
52
Chandigarh
By Business
Categories
Samp Acceptan Perce
Category le ce nt
SME's 1939 11 0.57
Educational
Institutions 77 1 1.30
IT 74 1 1.35
Retail 781 3 0.38
Others 10 0 0.00
TOTAL 2881 16 0.56
Company Wise
Distribution
Airtel 375 5 1.33
BSNL 144 0 0.00
TATA 24 0 0.00
Reliance 61 1 1.64
Connect 195 2 1.03
Sify 8 0 0.00
Others 14 1 7.14
Non-Users 1118 2 0.18
TOTAL 1939 11 0.57
Mohali
By Business
Categories
Samp Acceptan Perce
Category le ce nt
SME's 711 11 1.55
Educational
Institutions 30 0 0.00
IT 3 0 0.00
Retail 48 1 2.08
Others 312 4 1.28
TOTAL 1104 16 1.45
Company Wise
Distribution
Airtel 219 8 3.65
BSNL 42 0 0.00
TATA 16 1 6.25
Reliance 32 1 3.13
Connect 193 4 2.07
Sify 2 0 0.00
Others 3 0 0.00
Non-Users 597 5 0.84
TOTAL 1104 19 1.72
53
Panchkula
By Business
Categories
Samp Acceptan Perce
Category le ce nt
SME's 178 1 0.56
Educational
Institutions 9 0 0.00
IT 4 0 0.00
Retail 101 1 0.99
Others 601 17 2.83
TOTAL 893 19 2.13
Company Wise
Distribution
Airtel 28 4 14.29
BSNL 24 2 8.33
TATA 10 1 10.00
Reliance 23 2 8.70
Connect 93 4 4.30
Sify 3 0 0.00
Others 714 8 1.12
Non-Users 0 0 0.00
TOTAL 895 21 2.35
Consolidated
Sam Accepta Perce
Category ple nce nt
SME's 2828 24 0.85
Educational
Institutions 116 1 0.86
IT 81 1 1.23
Retail 930 5 0.54
Others 923 21 2.28
TOTAL 4878 52 1.07
Company Wise
Distribution
Airtel 622 17 2.73
BSNL 210 2 0.95
TATA 50 2 4.00
Reliance 116 4 3.45
Connect 481 10 2.08
Sify 13 0 0.00
Others 731 9 1.23
Non-Users 1715 7 0.41
TOTAL 3938 51 1.30
54
Profit & Loss account ------------------- in Rs. Cr. -------------------
Mar '04 Mar '05 Mar '06 Mar '07 Mar '08
12 mths 12 mths 12 mths 12 mths 12 mths
Income
Sales Turnover 3,163.54 3,303.04 3,780.95 4,041.83 3,283.30
Excise Duty 0.00 0.00 0.00 0.00 0.00
Net Sales 3,163.54 3,303.04 3,780.95 4,041.83 3,283.30
Other Income 190.52 512.39 124.62 105.83 173.25
Stock Adjustments 0.00 0.00 0.00 0.00 0.00
Total Income 3,354.06 3,815.43 3,905.57 4,147.66 3,456.55
Expenditure
Raw Materials 0.72 1.65 1.95 1.61 10.63
Power & Fuel Cost 31.28 34.61 37.93 43.09 63.12
Employee Cost 138.24 141.28 209.06 243.69 242.43
Other Manufacturing Expenses 1,759.66 1,859.76 2,127.36 2,258.37 1,873.13
Selling and Admin Expenses 645.66 401.31 338.67 376.15 321.18
Miscellaneous Expenses 57.21 70.62 115.03 165.19 127.26
Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00
Total Expenses 2,632.77 2,509.23 2,830.00 3,088.10 2,637.75
Mar '04 Mar '05 Mar '06 Mar '07 Mar '08
12 mths 12 mths 12 mths 12 mths 12 mths
Operating Profit 530.77 793.81 950.95 953.73 645.55
PBDIT 721.29 1,306.20 1,075.57 1,059.56 818.80
Interest 14.06 9.62 13.56 16.74 44.82
PBDT 707.23 1,296.58 1,062.01 1,042.82 773.98
Depreciation 172.07 244.15 359.56 391.33 301.31
Other Written Off 0.00 0.00 0.00 0.00 0.00
Profit Before Tax 535.16 1,052.43 702.45 651.49 472.67
Extra-ordinary items 7.78 1.38 45.30 69.19 16.76
PBT (Post Extra-ord Items) 542.94 1,053.81 747.75 720.68 489.43
Tax 165.61 297.61 207.18 244.07 145.52
Reported Net Profit 377.66 756.37 479.54 468.56 304.46
Total Value Addition 2,632.06 2,507.58 2,828.06 3,086.49 2,627.12
Preference Dividend 0.00 0.00 0.00 0.00 0.00
Equity Dividend 128.25 171.00 128.25 128.25 128.25
Corporate Dividend Tax 16.43 24.31 17.99 21.80 21.80
Per share data (annualised)
Shares in issue (lakhs) 2,850.00 2,850.00 2,850.00 2,850.00 2,850.00
Earning Per Share (Rs) 13.25 26.54 16.83 16.44 10.68
Equity Dividend (%) 45.00 60.00 45.00 45.00 45.00
55
Book Value (Rs) 181.30 200.98 212.67 223.14 229.73
Income Statement
As on( Months ) 31-Mar-07(12) 31-Mar-06(12) 31-Mar-05(12)
Profit / Loss A/C Rs mn %OI Rs mn %OI Rs mn %OI
56
Net Sales 40418.30 97.34 37809.53 97.81 33030.39 97.78
Operating Income (OI) 41524.00 100.00 38657.30 100.00 33778.73 100.00
OPBDIT 10464.20 25.20 10349.26 26.77 7755.35 22.96
OPBDT 10445.80 25.16 9619.56 24.88 6513.73 19.28
OPBT 6532.50 15.73 6025.84 15.59 4074.05 12.06
Non-Operating Income 965.40 2.32 1517.68 3.93 908.61 2.69
Extraordinary/Prior Period -455.60 -1.10 -430.48 -1.11 3288.81 9.74
Tax 2356.70 5.68 2317.62 6.00 2050.52 6.07
Profit after tax(PAT) 4685.60 11.28 4795.42 12.40 6220.95 18.42
Cash Profit 8598.90 20.71 8389.15 21.70 8660.62 25.64
Dividend-Equity 1282.50 3.09 1282.50 3.32 1710.00 5.06
Balance Sheet
As on 31-Mar-07 31-Mar-06 31-Mar-05
Assets Rs mn %BT Rs mn %BT Rs mn %BT
Gross Block 44698.40 52.18 39864.96 49.26 30857.31 40.43
Net Block 31047.10 36.24 29366.64 36.29 22718.66 29.77
Capital WIP 3404.40 3.97 1478.09 1.83 5131.68 6.72
Investments 17480.40 20.41 15310.67 18.92 8904.56 11.67
Inventory 47.20 0.06 38.02 0.05 19.65 0.03
Receivables 9551.90 11.15 7375.71 9.11 6089.45 7.98
Other Current Assets 24130.50 28.17 27363.36 33.81 33453.58 43.83
Balance Sheet Total(BT) 85661.50 100.00 80932.49 100.00 76317.59 100.00
Liabilities Rs mn %BT Rs mn %BT Rs mn %BT
Equity Share Capital 2850.00 3.33 2850.00 3.52 2850.00 3.73
Reserves 60250.40 70.34 57042.76 70.48 53678.85 70.34
Total Debt 1976.10 2.31 982.50 1.21 0.00 0.00
Creditors and Acceptances 8145.30 9.51 9337.42 11.54 12421.38 16.28
Other current liab/prov. 12439.70 14.52 10719.81 13.25 7367.36 9.65
Balance Sheet Total(BT) 85661.50 100.00 80932.49 100.00 76317.59 100.00
Ratio Analysis
As on 31-Mar-07 31-Mar-06 31-Mar-05
OPBIT/Prod.cap.empl.(%) 18.75 19.64 13.49
PBIT/Cap. Employed (%) 11.45 13.20 18.51
PAT/Networth (%) 7.43 8.01 11.00
Tax/PBT (%) 33.46 32.58 24.79
Total Debt/Networth (x) 0.03 0.02 0.00
Long Term Debt/Networth (x) 0.00 0.00 0.00
PBDIT/Finance Charges (x) 596.41 15.67 9.63
Current Ratio (x) 1.64 1.73 2.00
RM Inventory (days consumption) 0.00 0.00 0.00
FG inventory (days cost of sales) 0.00 0.00 0.00
Receivables (days gross sales) 86.26 71.20 67.29
Creditors (days cost of sales) 95.72 120.40 174.22
Op. curr. assets (days OI) 199.00 201.00 364.00
Share Statistics
As on 31-Mar-07 31-Mar-06 31-Mar-05
EPS (Rs.) 16.44 16.83 21.83
57
CFPS (Rs.) 30.17 29.44 30.39
Book Value (Rs.) 221.40 210.15 198.35
DPS (Rs.) 4.50 4.50 6.00
Mar '04 Mar '05 Mar '06 Mar '07 Mar '08
Profitability Ratios
Adjusted Net Profit Margin(%) -42.03 -62.80 -44.62 -21.67 -8.34
Cash Profit Margin(%) -10.34 -24.99 -6.30 9.46 17.65
Gross Profit Margin(%) -8.21 -22.70 0.58 9.51 17.27
Operating Profit Margin(%) -0.06 -11.78 11.23 20.44 23.75
Profit Before Interest And Tax Margin(%) -31.25 -48.84 -31.79 -11.05 -1.90
Return On Capital Employed(%) -8.23 -20.95 -21.48 -7.74 1.44
Return On Net Worth(%) -75.50 1,207.92 108.73 96.70 62.69
Spread Ratios
Interest Expended / Total Funds(%) -- -- -- -- --
Interest Income / Total Funds(%) -- -- -- -- --
Net Interest Income / Total Funds(%) -- -- -- -- --
Net Profit / Total Funds(%) -- -- -- -- --
Non Interest Income / Total Funds(%) -- -- -- -- --
Operating Expense / Total Funds(%) -- -- -- -- --
Profit Before Provisions / Total Funds(%) -- -- -- -- --
Management Efficiency Ratios
Debtors Turnover Ratio 4.46 4.44 7.35 8.63 9.18
Fixed Assets Turnover Ratio 0.41 0.46 0.57 0.65 0.89
Inventory Turnover Ratio -- -- -- 645.58 800.04
Loans Turnover Ratio -- -- -- -- --
Total Assets Turnover Ratio 0.47 0.65 1.03 0.82 1.21
Total Income / Capital Employed(%) -- -- -- -- --
Profit And Loss Account Ratios
Interest Expended / Interest Earned(%) -- -- -- -- --
Operating Expense / Total Income(%) -- -- -- -- --
Other Income / Total Income(%) -- -- -- -- --
Liquidity And Solvency Ratios
Current Ratio 0.39 0.43 0.31 0.33 0.41
Debt Equity Ratio 4.14 -- -- -- --
Long Term Debt Equity Ratio 4.04 -- -- -- --
Balance Sheet Ratios
Advances / Loan Funds(%) -- -- -- -- --
Debt Coverage Ratios
58
Interest Cover -1.44 -2.83 -2.92 -0.74 0.21
Deposit And Credit Growth Ratios
Cash Deposit Ratio(%) -- -- -- -- --
Credit Deposit Ratio(%) -- -- -- -- --
Investment Deposit ratio(%) -- -- -- -- --
Leverage Ratios
Interest Expended / Capital Employed(%) -- -- -- -- --
59
Materials
Work in
0.7% 0.8% 0.7% 0.8%
Process
Finished
3.7% 3.8% 3.7% 3.3%
Goods
Progress
Payments & 0.0% 0.0% 0.0% 0.0%
Other
Prepaid
1.6%
Expenses
Other Current
1.7% 3.4% 4.0% 4.4% 6.1%
Assets
Current Assets -
36.3% 37.5% 38.8% 40.1% 54.3%
Total
Long Term
17.8% 17.1% 16.5% 14.8% 3.6%
Receivables
Investment in
Associated 6.3% 6.4% 6.5% 6.2% 5.3%
Companies
Other
11.8% 11.9% 11.1% 10.2% 8.0%
Investments
Property Plant
and Equipment 54.0% 55.4% 57.8% 60.6% 66.2%
- Gross
Accumulated
29.1% 30.7% 34.0% 36.3% 39.1%
Depreciation
Property
Plant and
24.8% 24.7% 23.8% 24.3% 27.1%
Equipment �
Net
Other Assets 2.9% 2.4% 3.3% 4.4% 1.7%
Deferred
0.0% 0.0% 0.0% 0.0%
Charges
Tangible
2.9% 2.4% 3.3% 1.7%
Other Assets
Intangible
0.0%
Other Assets
Total Assets 100.0% 100.0% 100.0% 100.0% 100.0%
Liabilities &
Shareholders'
Equity
Total 32,476,736. 28,624,880. 24,335,011. 22,040,228. 20,296,263.0
60
Liabilities &
Shareholders' 0 0 0 0
Equity
Accounts
6.8% 7.3% 7.6% 7.8% 7.8%
Payable
Short Term
Debt & Current
18.1% 16.6% 14.5% 15.0% 15.6%
Portion of Long
Term Debt
Accrued Payroll 0.2%
Income Taxes
1.3% 1.2% 1.2% 1.1% 1.6%
Payable
Dividends
Payable
Other Current
10.0% 9.9% 10.5% 10.5% 12.1%
Liabilities
Current
Liabilities - 36.2% 35.0% 33.8% 34.5% 37.2%
Total
Long Term
19.3% 19.7% 20.6% 19.3% 20.2%
Debt
Long Term
Debt Excluding
19.2% 19.6% 20.4% 19.0% 20.2%
Capitalized
Leases
Capitalized
Lease 0.1% 0.2% 0.2% 0.3% 0.0%
Obligations
Provision for
Risks and 2.0% 2.4% 2.7% 3.3% 3.2%
Charges
Deferred
Income
Deferred Taxes 3.7% 3.4% 3.3% 3.5% -0.2%
Deferred
4.0% 3.8% 2.0%
Taxes - Credit
Deferred
0.3% 0.4% 2.2%
Taxes - Debit
Deferred Tax
Liability in
Untaxed
Reserves
61
Other Liabilities 0.4% 0.5% 0.3% 0.3% 0.4%
Total Liabilities 61.6% 61.0% 60.8% 60.9% 60.8%
Non-Equity
0.0% 0.0% 0.0% 0.0% 0.0%
Reserves
Minority
1.9% 2.1% 2.1% 2.0% 2.4%
Interest
Preferred Stock 0.0% 0.0% 0.0% 0.0% 0.0%
Preferred
Stock Issued for
ESOP
ESOP
Guarantees -
Preferred Issued
Common
36.4% 36.9% 37.2% 37.1% 36.8%
Equity
Total Liabilities
& Shareholders' 100.0% 100.0% 100.0% 100.0% 100.0%
Equity
62
Income
Extraordinary
0.0% 0.7% 0.8% 2.5% 0.0%
Credit - Pretax
Extraordinary
0.0% 0.0% 1.1% 1.9% 1.5%
Charge - Pretax
Non-Operating
0.6% 0.4% 0.4% 0.3% 0.3%
Interest Income
Reserves -
Increase/Decreas 0.0% 0.0% 0.0% 0.0% 0.0%
e
Pretax Equity in
0.0% 0.5%
Earnings
Other
Income/Expense 0.3% -0.0% 0.8% 0.4% 2.6%
- Net
Earnings before
Interest, Taxes,
Depreciation & 15.9% 15.8% 14.9% 15.9% 15.8%
Amortization
(EBITDA)
Earnings before
Interest & 10.2% 10.0% 9.6% 10.3% 10.5%
Taxes(EBIT)
Interest Expense
0.2% 0.1% 0.1% 0.1% 0.2%
on Debt
Interest
0.0% 0.0% 0.0% 0.0% 0.0%
Capitalized
Pretax Income 9.9% 9.9% 9.5% 10.2% 10.3%
Income Taxes 3.8% 3.8% 3.5% 3.9% 4.1%
Minority Interest 0.2% 0.4% 0.4% 0.2% 0.3%
Equity in
0.9% 0.8% 0.8% 0.7% 0.0%
Earnings
After Tax Other
0.0% 0.0% 0.0% 0.0% 0.0%
Income/Expense
Discontinued
0.0% 0.0% 0.0% 0.0% 0.0%
Operations
Net Income
before
Extraordinary 6.9% 6.5% 6.3% 6.7% 5.9%
Items/Preferred
Dividends
Extraordinary 0.0% 0.0% 0.0% 0.0% 0.0%
63
Items &
Gain/Loss Sale
of Assets
Preferred
Dividend 0.0% 0.0% 0.0% 0.0% 0.0%
Requirements
Net Income after
Preferred
Dividends - 6.9% 6.5% 6.3% 6.7% 5.9%
available to
Common
BIBLIOGRAPHY
Web Resources
http://citehr.com
http://about.com
http://wikpedia.com
http://howstuffworks.com
64
Book Resources
WINNING - Jack Welch
What 7 best CEO’s Know – Jeffery A. Krames
Marketing Principles – Krishan Bhardwaj
MS Word 2007 in 21 Days – Peter Norton
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