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SUBMITTED TO: AMITA RANI
SUBMITTED BY: Name: Swati Sabherwal MBA (2008-10)
RAYAT-BAHRA INSTITUTE OF MANAGEMENT Campus: Sahauran, Near Kharar, Distt. Mohali (Pb.)
“Knowledge is an experience gained in life, it is the choicest possession, which should not be shelved but should be happily shared with others”. No work in this world can be completed successfully if guidance is not provided in the right direction. In this regard, I express my gratitude to my esteemed mentor, Mrs. AMITA RANI for her valuable critiques, assistance and encouragement, which enabled me to carry on the project successfully. I thank her for giving me a wonderful opportunity to work on this project. Her time-to-time guidance and incessant support helped me to broaden my outlook on the project I am highly obliged for their support throughout the preparation of this project. I would also like to thank Mr. Deepak Puri for providing company details like Annual Statements and some more valuable information and guidance. Last but not the least I would also like to thank the respondents who spared their valuable time to fill the questionnaire. I would like to thank all for giving their valuable inputs and time.
This is to state that the Project titled “WORKING CAPITAL MANAGEMENT OF RIL & CUSTOMER PREFERENCE TOWARDS RELIANCE COMMUNICATIONS’’ is based on the original work carried out by me and is being submitted towards partial fulfillment of the requirement for the MBA program of the Punjab Technical University, Jalandhar. This has not been submitted for the award of any other degree or diploma.
magazines and scheme brochures. by exploratory research. To make the report simpler and easier to understand graphs. This report gives the reader an overview of the concept of working capital in the simplest language as far as possible. I hope this report fulfills its purpose by providing an in-depth knowledge of mutual funds. information from residents of sector 8 and 9. It also gives information on the working capital management of Reliance Industries Limited and customer preference towards Reliance Communications. by annual reports.e. .EXECUTIVE SUMMARY It gives me an immense pleasure in presenting this final project report on “WORKING CAPITAL MANAGEMENT OF RIL & CUSTOMER PREFERENCE TOWARDS RELIANCE COMMUNICATIONS” for the partial fulfillment of the degree of Masters of Business Administration (2008-10). Both Primary Data i. At the end.e. newspapers.charts. Special care has been taken to ensure that this report is free of any printing mistakes but I apologize if any printing error creeps in. pie. tables and Chi-Square Test are used wherever possible and interpretation of the same has been given. The result is purely based on a complete survey carried out for the project. Chandigarh and people coming to recharge dealers in sector 8 and Secondary Data i.
CHAPTER NUMBER NAME OF THE CHAPTER CHAPTER 1 INTRODUCTION CHAPTER 2 REVIEW OF THE LITERATURE CHAPTER 3 RESEARCH METHODOLOGY CHAPTER 4 ANALYSIS AND INTERPRETATION CHAPTER 5 FINDINGS CHAPTER 6 SUGGESTIONS CHAPTER 7 CONCLUSION CHAPTER 8 REFERENCES CHAPTER 9 ANNEXURES .
WHAT IS WORKING CAPITAL? .
WORKING CAPITAL MANAGEMENT Working Capital Management refers to management of current assets and current liabilities. A number of definitions have been formulated: perhaps the most widely acceptable would be: “WORKING CAPITAL represents the excess of CURRENT ASSETS over CURRENT LIABILITIES”. fixed capital would be idle and ineffectual. Therefore. tools. Without working capital. Arranging short term . materials. Its importance stems from two reasons: Investment in current assets represents a substantial portion of total investment. Working Capital is that portion of a business concern’s total capital. equipments. power. The fixed capital provides the basic means for the business to earn its return. The importance of working capital management is effected in the fact that financial managers spend a great deal of time in managing current assets and current liabilities.. All these require enough resources to keep the wheels of the business in motion. fixed asset investment and long term financing are responsive to variation in sales. which is employed in term of operations. These factors involve expenses. these fixed assets would not produce anything. The major thrust of course is on the management of current assets. accessories etc. to operate the machines. In addition. The same may be designated in the following equation: WORKING CAPITAL= CURRENT ASSETS – CURRENT LIABILITIES: Funds thus invested in current assets keep revolving fast and are being constantly converted in to cash and this cash flows out again in exchange for other current assets. in addition to the amount of fixed capital every business – whether new or growing requires Working Capital. But by themselves. Thus it is known as revolving or circulating capital or short term capital. For instance. we require men. stores. etc. However. Working Capital Management is a significant fact of financial management. Investment in current assets and the level of current liabilities have to be geared quickly to change in sales. we have to maintain certain current assets like stocks.. this relationship is not as close and direct as it is in the case of working capital components.Fixed Capital is that part of which is required for the purchase of fixed assets like Land and Building . To be sure. This is understandable because current liabilities arise in the context of current assets. Plant and machinery etc.
financing. and monitoring the inventories consume a great deal of time of financial managers. I ) ON THE BASIS OF BALANCE SHEET CONCEPT Gross working capital is the total of all current assets. TYPES OF WORKING CAPITAL Working Capital may be classified in to two ways: a) b) On the basis of concept. since it depends upon several variables such as character of the business. volume and terms of purchase & sales and seasonal and other variations. Net working capital is the difference between current assets and current liabilities. What a firm really does is . administering the accounts receivable. the lengths of the merchandising cycle. Though the later concept of working capital is commonly used it is an accounting concept with little sense to say that a firm manages its net working capital. On the basis of time. scale of operations. rapidity of turnover. Thus the job of efficient working capital management is a formidable one. controlling the movement of cash. negotiating favorable credit terms. The problem of working capital management is one of the “best” utilization of a scarce resource.
work in process. The minimum level of current assets is called permanent or fixed working capital as their part of working capital is permanently blocked in current assets. The constituents of current assets & current liabilities are shown in table A. Provisions. furnished goods and cash balance. Investments. Cash and Bank balance. Trade Debtors. II) ON THE BASIS OF TIME: Permanent or Fixed Working Capital: Permanent or Fixed Working capital is the minimum amount which is required to ensure effective utilization of fixed facilities and for maintaining the circulation of current assets. Finished goods. Work in progress. With the growth of business there is an increase in current assets. Loans and Advances. Temporary or Variable Working Capital: . Borrowings. There is always a minimum level of current assets that is continuously required by the enterprise to carry out its normal business operation. other. TABLE A: Constituents of Current Assets and Current Liabilities PART –A: CURRENT ASSETS Inventories – Raw materials and components. Trade Advances.to take decisions with respect to various current assets and current liabilities. PART –B: CURRENT LIABILITIES Sundry Creditors. For example every firm has to maintain minimum level of raw materials.
Temporary or Variable Working Capital is the amount of working capital that is required to meet the seasonal demands and some special exigencies. b) Special Working Capital. Larger working capital will require . There are also business in which fixed is small in relation to working capital. Other unexpected happenings are likely to create unusual demands for working capital. as they have little demand for large inventories. business with seasonal demand would require larger amount of working capital. There is no concrete formula to decide the amount of workings capital required by a business. As the business expands the amount needed would grow. Generally they operate on cash and prepaid basis. Further. The Major determinants of the proportion of fixed to working capital are as follows: Nature of Business : Business units selling service (like public utilities) instead of a commodity. But trading concerns (merchandising companies) make a greater use of working capital. a small business would need lesser amount of working capital than a larger business engaged in the same line. Similarly. A relatively small proportion will consist of working capital in case of manufacturing concerns. Variable working capital can be further classified as:a) Seasonal Working Capital. an estimate of requirements of working capital will differ from concern and from industry to industry. Special working capital is the part of working capital which is required to meet the special exigencies such as part of working capital which is required to meet special exigencies such as launching of extensive marketing campaigns for conducting research etc. have little need for working capital. For instance. cyclical changes. periods of prosperity and depression cause wide variations in the demand for working capital. since inventory represents a major item of investment. FACTORS DETERMINING WORKING CAPITAL REQUIREMENTS With the type of business and the ambition of proprietors the amount is bound to vary. Therefore. Most of the enterprises have to provide additional working capital to meet the special and seasonal needs. The capital required to meet the seasonal needs of enterprise is called Seasonal working capital. is called Special working capital.
A company should have some production policy i. the process with the shortest production period should be chosen. in some cases even a smaller concern may need more working capital due to high overhead charges Insufficient use of available resources and other economic disadvantages of small size. Manufacturing Process/ Length of the production cycle : In manufacturing business. Production Policy : In certain industries the demand is subject to wide fluctuation due to seasonal variation. The requirement of working capital. Therefore. The production could be kept either steady by accumulating inventories during slack period with a view to meet high demand during the peak season or the production could be curtailed during the slack season and increased during peak season. In chemical or engineering industries.e. in such cases depends upon the production policy. longer the process period of manufacture. the requirements of working capital increase in direct proportion to length of manufacturing process. if there is alternative process of production. Size of Business : The working capital requirements of a concern are directly influenced by the size of the business which may be measured in terms of scale of operations. longer is the amount of working capital required. However. The longer the manufacturing time. working capital cycle starts with the purchase of raw materials and ends with realization of cash from the sale of finished goods. the raw materials and other supplies have to be carried for a longer period in the process with progressive increment of labor and service costs before the finished product is finally obtained. If the policy is to keep production steady by accumulation inventories it will require higher working capital. Greater the size of a business unit generally larger will be the requirement of working capital. to maintain the production is a considerable range in order to meet the changing demand. A company like RIL whose productive capacities can be utilized for manufacturing varied products can have the advantages of diversified activities and solve their working capital problem. working capital would be relatively larger. The cycle involves the purchase of .in labor intensive industries than in highly mechanized industries. Working Capital Cycle : In manufacturing concern.
If the market is strong and completion weeks a firm can manage with a smaller inventory of finished goods because customers can be served with some delay. A concern that purchases its requirements on credit and sells its products/services on cash requires lesser amount of working capital. working capital needs tends to be high because of greater investment in finished goods inventory and accounts receivable. conversion of finished stick in to sales and receivables and ultimately realization of cash and this cycle continuous again from cash to purchase of raw materials and so on.e. partial or total. optimistic expansion of business etc. when there is a down swing of the cycle. Business Cycle : Business Cycle refers to alternate expansion and contraction in general business activities. further. generous credit terms may have to be offered to attract customers in a highly competitive market. a larger inventory of finished goods is required to promptly serve customer who may not be inclined to wait because other manufacturers are ready to meet their needs. sales . Further in such situation the firm can insist on cash payment and avoid lock – up of funds in accounts receivable. when the business is prosperous there is a need for larger amount of working capital due to increase in sales.raw materials and ends with the realization of cash from the sale of finished products. On the country at the time of depression i. Market Condition : The degree of competition prevailing in the market places has an important bearing on working capital needs. The cycle involves purchase of raw materials and stores. rise in prices. its conversion in to stock of finished goods through work in progress with progressive increment of labor and service cost. Credit Policy : The credit policy is concerned in its dealings with debtors and creditors influence considerably the requirements of the working capital. shall need larger amount of funds are bound to be tied up in debtors or bills receivables. On the other hand a concern buying its requirements for cash and allowing credit to its customers. When competition keen. Thus. it can even ask for advance payment. In a period of born i.e. business contracts.
we may have retained profits to provide for more working capital but in the first growing concerns. Such firms with high earning capacity may generate cash profits from operations and contribute to their capital. import policy. difficulties are faced in collections from debtors and firms may have a large amount of working capital lying ideal Rate of Growth Of business : The working capital requirements of a concern increase with the growth and expansion of its business activities. we shall require larger amount of capital. importance of labor.decline. monopoly conditions etc. The effect of rising prices may be different for different firms. asset structure. The dividend policy of a concern also influences the requirements of the working capital. management ability. Generally the rising prices will require the firm to maintain larger amount of working capital as more funds will require maintaining the same current assets. Some firms may be affected much while some other may not be affected at all by the rise in prices. Although it is difficult to determine the relation between growth in the volume of the business and in the growth of the working capital of the business. A firm that maintains steady high rate of cash dividend irrespective of its generation of profits needs more capital than the firm retains larger part of its profits and does not pay high rate of cash dividend. Price Level Changes : Changes in the prices level also effects the working capital requirements. Other Factors : Certain other factors such as operating efficiency. . banking facilities etc. yet it may be concluded that for normal rate of expansion in the volume of the business. Earning Capacity And Dividend policy : Some firms have more earning capacity than others due to the quality of their products. also influences the requirement of working capital. irregularities a supply.
The fixed proportion of working capital should be generally financed from the fixed capital sources while the temporary or variable working capital requirements of a concern may be met from the short term sources of capital.FINANCING OF WORKING CAPITAL The working capital requirements of a business concern can be classified as:a) b) Permanent or Fixed working capital requirements. This minimum level of current assets gives rise to permanent or fixed working capital as this part of working capital is permanently blocked in current assets. The various sources for the financing of working capital are:PERMANENT OR FIXED SOURCES OF WORKING CAPITAL 1) Shares 2) Debentures 3) Public Deposits 4) Ploughing back of profits 5) Loans from financial institutions TEMPORARY OR VARIABLE SOURSES OF WORKING CAPITAL 1) Commercial banks 2) Indigenous bankers 3) Trade creditors 4) Installment credit 5) Advances . Temporary or variable capital requirements. strikes etc. This is so because there always a minimum level of current assets which are continuously required by the enterprise to carry out its day-to-day business operations and this minimum cannot be expected to reduce at any time. In concern. this proportion of working capital gives rise to temporary or variable working capital which cannot be permanently employed gainfully in business. Similarly some amount of working capital may be required to meet the seasonal demands and some special exigencies such as rise in prices. a part of working capital investments are as permanent investment in fixed assets.
6) Accounts receivable- credit/factoring 7) Accrued expenses 8) Commercial paper Commercial banks are the most important sources of short term capital. The major portions of working capital loans are provided by commercial banks. They provide of wide variety of loans tailored to meet the specific requirements of a concern. The different forms in which the banks normally provide loans and advances are as follows:a) Loans b) Cash credits c) Overdrafts d) Purchasing and discounting of bills In addition to the above mentioned forms of direct finance, commercial banks help their customers in obtaining credit form their suppliers through the letter of credit arrangements. It is always a test to the prudence of a financial manager to obtain the correct amount of working capital at the right time, at a reasonable cost and at the most favorable terms. • • • • MANAGEMENT OF INVENTORY MANAGEMENT OF CASH MANAGEMENT OF RECEIVABLES MANAGEMENT OF INVENTORY Inventories constitute the most significant part of current assets of a large majority of companies in India. On an average, inventories are approximately 60 % of current assets in public limited companies in India. Because of the large size of inventories maintained by firms maintained by firms, a considerable amount of funds is required to be committed to them. It is, therefore very necessary to manage inventories efficiently and effectively in order to avoid unnecessary investments. A firm neglecting a firm the management of inventories will be jeopardizing its long run profitability and may fail ultimately. The purpose of inventory management is to ensure availability of materials in sufficient quantity as and when required and also to minimize investment in inventories at considerable degrees,
without any adverse effect on production and sales, by using simple inventory planning and control techniques. • MANAGEMENT OF CASH
Cash is the important current asset for the operation of the business. Cash is the basic input needed to keep the business running in the continuous basis, it is also the ultimate output expected to be realized by selling or product manufactured by the firm. The firm should keep sufficient cash neither more nor less. Cash shortage will disrupt the firm’s manufacturing operations while excessive cash will simply remain ideal without contributing anything towards the firm’s profitability. Thus a major function of the financial manager is to maintain a sound cash position. Cash is the money, which a firm can disburse immediately without any restriction. The term cash includes coins, currency and cheques held by the firm and balances in its bank account. Sometimes near cash items such as marketing securities or bank term deposits are also included in cash. Generally when a firm has excess cash, it invests it is marketable securities. This kind of investment contributes some profit to the firm. NEEDTO HOLD CASH The firm’s need to hold cash may be attributed to the following three motives:The Transaction Motive: The transaction motive requires a firm to hold cash to conduct its business in the ordinary course. The firm needs cash primarily to make payments for purchases, wages and salaries, other operating expenses, taxes, dividends, etc. The Precautionary Motive: A firm is required to keep cash for meeting various contingencies. Though cash inflows and outflows are anticipated but there may be variations in these estimates. For example a debtor who pays after 7 days may inform of his inability to pay, on the other hand a supplier who used to give credit for 15 days may not have the stock to supply or he may not be in opposition to give credit at present. Speculative Motive: - The speculative motive relates to the holding of cash for investing in profit making opportunities as and when they arise. The opportunities to make profit changes. The firm will hold cash, when it is expected that interest rates will rise and security price will fall.
MANAGEMENT OF RECEIVABLE
A sound managerial control requires proper management of liquid assets and inventory. These assets are a part of working capital of the business. An efficient use of financial resources is necessary to avoid financial distress. Receivables result from credit sales. A concern is required to allow credit sales in order to expand its sales volume. It is not always possible to sell goods on cash basis only. Sometimes other concern in that line might have established a practice of selling goods on credit basis. Under these circumstances, it is not possible to avoid credit sales without adversely affecting sales. The increase in sales is also essential to increases profitability. After a certain level of sales the increase in sales will not proportionately increase production costs. The increase in sales will bring in more profits. Thus, receivables constitute a significant portion of current assets of a firm. But for investment in receivables, a firm has to insure certain costs. Further, there is a risk of bad debts also. It is therefore, very necessary to have a proper control and management of receivables.
Operating cycle refers to the time duration required to convert sales ,after the conversion of recourses into inventories, into cash .the operating cycle of a manufacturing company like RIL includes: 1.) Acquisition of resources such as raw materials, labor, power and fuel etc. 2.) Manufacture of the product which includes conversion of materials into work-in-progress into finished goods. 3.) Sale of the product either for cash or on credit. Credit sales create account receivables for collection.
) Debtors collection period=Avarage book debts/Avarage credit sales per day.) Finished goods conversion period= Average stock of finished goods/Avarage cost of of goods sold per day.) W-I-P Holding period=Average w-i-p in inventory/Average cost of production per day. 4. Stores and spares/ Avarage SIGNIFICANCE OF WORKING CAPITAL .) Credit period availed=Avarage trade creditors/Average credit purchase per day. 6. 5.) Stores and spares conversion period= Average stock of consumption per day.COMPONENTS OF WORKING CAPITAL ARE CALCULATED AS FOLLOWS 1) Raw Materials Storage Period=Avarage stock of raw materials/Avarage cost of raw material consumption per day. 3. 2.
The teledensity of the Country has increased from 18% in 2006 to 33% in December 2008.10 million monthly subscribers. one of the highest in any sector of the Indian Economy. EDGE(Enhanced Data rates for Global Evolution) technologies. The Government monopolies are now being privatized and consequently competition is developing. the domestic and small business markets are the hardest. wireless data service etc. The leading telecom companies like AT&T. Over the past few years information and communications technology has changed in a dramatic manner and as a result of that world telecom industry is going to be a booming industry. showing a stupendous annual growth of about 50%. Economical aspect of telecommunication industry: World telecom industry is taking a crucial part of world economy. SBC Communications. These companies are working on telecommunication fields like broadband technologies. Substantial economic growth and mounting population enable the rapid growth of this industry. Vodafone. Bell South. Qwest Communications are trying to take the advantage of this growth. The total revenue earned from this industry is 3 percent of the gross world products and is aiming at attaining more revenues. India is also the fastest growing telecom market in the world with an addition of 9. One statistical report reveals that approximately 16. The world telecommunications market is expected to rise at an 11 percent compound annual growth rate at the end of year 2010.ABOUT TELECOM INDUSTRY World telecom industry is an uprising industry. The Department of . proceeding towards a goal of achieving two third of the world's telecom connections. INDIAN OVERVIEW Today the Indian telecommunications network with over 375 Million subscribers is second largest network in the world after China. world telecommunication industry has been consolidating by allowing private organizations the opportunities to run their businesses with this industry. Present market scenario of world telecom industry: Over the last couple of years. voice over Internet protocol. Among all. Verizon. LAN-WAN inter networking. optical networking.9% of the world population has access to the Internet.
Mobile Number Portability 4. whether fixed landline or mobile.Telecommunications has been able to provide state of the art world-class infrastructure at globally competitive tariffs and reduce the digital divide by extending connectivity to the unconnected areas. Recent things to watch in Indian telecom sector are: 1. Strengthening research and development for manufacturing. The reform measures coupled with the proactive policies of the Department of Telecommunications have resulted in an unprecedented growth of the telecom sector. As a result common man today has access to this most needed facility. Building a modern and efficient infrastructure ensuring greater competitive environment. From the status of state monopoly with very limited growth. Market dynamics once the recently licensed new telecom operators start rolling out 6. With equal opportunities and level playing field for all stakeholders. Due to technological advancement and increase in traffic. 3G and BWA auctions 2. To accelerate broadband penetration 6. 2. 3. Thus Indian telecom sector has come a long way in achieving its dream of providing affordable and effective communication facilities to Indian citizens. New Policy for Value Added Services 5. Universal service to all uncovered areas including rural areas. 8. India's telecom sector has shown massive upsurge in the recent years in all respects of industrial growth. 7. Reduction in Mobile Termination Charges as the cost per line has substantially reduced 9. 7. Enabling Indian telecom companies to become global players. Telephone. MVNO 3. India has emerged as a major base for the telecom industry worldwide. value added services. it has grown in to the level of an industry. 4. Increased thrust on telecom equipment manufacturing and exports. Services. Efficient and transparent spectrum management 5. The thrust areas presently are: 1. is an essential necessity for the .
the featured products in the segment came in to prominence. Tata. At present the country's telecom industry has achieved a growth rate of 14 per cent. and WLL to the great 3G Technology in mobile phones. Removal of restrictions on foreign capital investment and industrial de-licensing resulted in fast growth of this sector. like any other industrial sector in the country. Till 2000. CDMA and IP services to customers. though cellular phone companies were present. both the Public Players and the Private Players are putting in their resources and efforts to improve the telecommunication technology so as to give the maximum to their customers. and to a great extend in the rural areas. Day by day. fixed landlines were popular in most parts of the country. Idea. telecom equipment and accessories manufacturing has also grown in a big way. WLL. etc. the field of telephonic communication has now expanded to make use of advanced technologies like GSM. Starting from telegraphic and telephonic systems in the 19th century. BPL. GSM mobiles. Major players in the sector are BSNL. This changing phase was possible with the economic development that followed the process of structuring the economy in the capitalistic pattern. has gone through many phases of growth and diversification. Even for small shopkeepers and factory workers a phone connection is not an unreachable luxury. Increasing competition among players allowed the prices drastically down by making the mobile facility accessible to the urban middle class population. Today the industry offers services such as fixed landlines. MTNL. . Bharti Teleservices. With the growth of telecom services. and measures to allow new players country. Indian Telecom sector. CDMA.people of India. Hutchison Essar. with government of India setting up the Telecom Regulatory Authority of India.
both IPCL and Reliance started adopting “Best Practices” from each other. We have great confidence in the capabilities of IPCL and its people. The successful absorption of Reliance’s best practice by IPCL in all areas of operations.04 billion. The new management team has reendorsed the company’s mission to create value for all stakeholders. This led to optimal utilization of available resources for enhancing productivity. 90% jump over the previous year’s profit of INR 1. 2002. MISSION & VISION “Continuously innovate to remain Partners in human progress by Harnessing science & technology in the petrochemicals domain” OUR MISSION “Be a globally preferred Business associate with responsible Concern for ecology. said “we are delighted with the complete turnaround in IPCL’s performance in the very first year of acquisition by reliance. And stakeholder’s value”. The Reliance Way) HISTORY OF IPCL 2002 ONWARDS-RELIANCE ACQISITION The government of India handled over management control to Reliance group on June 4. Mukesh Ambani. The physical and cultural integration began from the word go. The profit for the first financial year(2002-03) under the reliance management stood at INR 2.07 billion. Commenting on the results for 2002-2003. and are confident of further improvement in the company’s performance in the future”. Mr. Chairman. All over efforts are being made to enhance productivity and control cost for superior value addition. Energizing India. . and positive impact of measures introduced for cost reduction and productivity and efficiency gains. society. since then the company is being managed by reliance.ABOUT RELIANCE INDUSTRIES LIMITED (Enhancing Lives.
6.410 million) Rs 15.309 crore ($ 3.4 % of India’s total exports. We shall sustain organizational excellence through visionary leadership and innovative efforts”.083 million) 25 % Rs. .9 % of the Government of India’s indirect tax exports. Respect for People. Agility and Innovation”.444 million) Net Profit (excl.45. 2.365 crore ($ 4.637 crore ($ 3.018 million) Rs 15.076 million) Rs 22. Unity of Purpose. exceptional item) : SIGNIFICANT CONTRIBUTION TO INDIA’S ECONOMIC GROWTH 10.328 crore ($ 28.850 million) Rs 25.VALUES & QUALITY POLICY OUR VALUES “Integrity. QUALITY POLICY “Bare committed to meet customers’ requirements through continual improvement Of our quality management systems. Outside-in Focus. 2.743 crore ($ 5.46.1 % of the total market capitalization in India.706 crore ($ 48. HIGHLIGHTS(2008-09) Turnover PBDIT Cash Profit Net Profit Net Profit 5 years CAGR Total Assets : : : : : : Rs 1.
“Every thing under one roof” inspired the second logo of IPCL.in a circle. Weightage of 11. This symbol. This decision of the government. a diversity of activities and products.representing the molecular structure of the simplest organic chemical. IPCL took up the challenge of setting up the entire integrated complex at Vadodara. emerging from one sourceand branching out in different directions. The lines flow upwards and outwards from a common base into infinity. IPCL.1 % in the S&P CNX Nifty Index. or logo. as a corporate entity. Weightage of 13. which consisted of a tetrahedron . . reflects what IPCL is a single matrix of the many. is and what it shall strive to be. methane .6 % in the BSE Sensex. yet retaining its unity and identity. COMPANY LOGOS The first logo.
air and space The government of India handled over management control to Reliance group on June 4.water. Government of India withdrew its nominee directors from the board of directors of India petrochemicals co. The green colour used in the design reinforces the theme . RIL complete a landmark acquisition of IPCL. universal goodwill. RIL signed MOU with GAIL(INDIA) Ltd. Central India ploysters ltd. Completion of the second phase of the Gandhar complex Reliance took over IPCL. Gujarat. a Reliance group company. ltd. 2002. Amendment agreement between the government and the strategic partner. Orissa polyfibres ltd. India polyfibres ltd. RIL MILESTONE YEAR 1969 1970 1973 1992 1992 1996 1999 2000 2002 2004 2005 2006 EVENTS IPCL was incorporated under company act. Commenced commercial operation at Vadodara. Reliance petroleum limited. to explore opportunities of setting of 2007 2008 .aspiration and growth.e. general prosperity and excellence in everything.reaching for unending growth. Construction of our first Petrochemicals complex commenced at Vadodara. Initial public offering and listing on the Vadodara stock exchange Second Petrochemical Complex commenced at Nagothane. since then the company is being managed by reliance. Apollo fibres ltd. light. Recron synthetics ltd and Silvassa industries Pvt ltd with IPCL. Maharashtra Third Petrochemical Complex commenced at Gandhar Gandhar complex commissioned. Amalgamation of six polyester companies i. rooted in the earth and in harmony with the other elements .
provides global perspectives and has a large number of expatriates on its rolls. Health education and awareness form an integral part of the health care programme at Reliance. People are central to Reliance's growth strategy. world-class professionals from around the globe. working with top-notch. fulfilling and exciting! Reliance offers access to world-class resources for personal and professional growth. Growth is care for the environment . World-class exposure. growth opportunities and competitive compensation packages offered by Reliance enables it to attract and retain excellent talent. You will be part of a culture of excellence. Reliance endeavours to create a workplace where every person can reach his or her full potential. health risk assessment studies and audits for exposure to various materials are also performed. RPL merged with RIL Ltd : value creation through scale & synergies. Reliance is a young company.2009 petrochemical plants. Growth is care for safety We believe that the safety of each employee is the responsibility of the individual as well as of the whole community of employees. Growth is care for good health Reliance's occupational health centres carry out pre-employment and periodic medical checkups as well as other routine preventive services. with an average age of 39 years. GROWTH THROUGH CHALLENGES Life at Reliance is challenging. Reliance targets the world market for talent. Talent is drawn from diverse academic and professional backgrounds. Specialised tests like biological monitoring. At Reliance. you'll have the chance to take on challenging responsibilities. A large in-house pool of intellectual capital is the driving force behind Reliance's rapid growth. and is one of its competitive advantages.
believing strongly that our business strength fuels our social contributions. Reliance encourages. human capital and infrastructure initiatives. There is freedom to explore and learn.Reliance believes that a clean environment in and around the workplace fosters health and prosperity for the individual. Here are few things that set them apart: • "Impossible is an inspiring word" . we invest in social infrastructure. To this end. For those who study innovative organizations Reliance Industries will be a shining example of how innovation is practised in almost everything that they do. Today mangoes grown in Jamnagar are sold in Harrods London. hands off execution. funds and develops numerous education. it was considered impossible to turn a barren land into a greenbelt. • "Hands on thinking. the group and the larger community to which they belong. When it comes to execution empowerment delegation down to the last employee in the chain is clearly demonstrated." . health. These initiatives are undertaken through partnerships with non-governmental organizations. . operation and maintenance of all our projects. They think everything through and meticulous planning is their hall mark. behaves. construction. lives and thrives with a global mindset. Growth is thinking beyond business As corporate citizens. Environmental protection is an integral part of the planning. and there are opportunities that inspire initiative and intrinsic motivation. Growth is betting on our people Reliance builds with care a workplace that proactively fosters professional as well as personal growth. design. We believe that people must dream to achieve. Reliance thinks. Again to quote the Jamnagar example. corporate and trusts.Nothing turns on the leadership at Reliance Industries than this magical word.It is characteristic of Reliance leadership. encouraging every employee to reach his / her full potential by availing opportunities that arise across the group. that these dreams will drive the company's excellence in all its businesses.
Reliance has mastered project management skills and has made it virtually into a fine art. even more explicitly than ever before. Dhirubhai Ambani and the current Chairman Sh. the behaviour definer. Given its ambition for India and its own organization Reliance leadership has now taken on a major initiative in the innovation domain. instead they are treated as a learning opportunity. Cumulatively it has trained 1.Developing a metric to measure how much money was spent. It is this sense of speed that restored operations in record time in Jamnagar. welders. To a question on what would be his next big ambition Sh. Mukesh Ambani answered • "Rural transformation. Creating a supply chain that the world will envy. .Creating direct employment for half a million people in rural India." Part of meticulous thinking is the ability to anticipate problems." . Patalganga and Hazira after being affected by cyclones and floods." • "Measuring success differently" . is just one example of inspiring people to think and act differently and effectively. 50. Innovation has to become the language.000 workmen . Be prepared. Second time it is a mistake. the culture and the soul of Reliance.electricians." . It is our job to anticipate the resistance.• "First time it is learning. take the responsibility to earn the respect of all stakeholders to create a win-win business model.” . The leadership of RIL recognizes that its biggest competitive advantage and differentiator in the future would be innovation. • "Sense of urgency" . It is one such mistake converted to learning that created the world's largest 'Craft Centre' located at Jamnagar. Mukesh Ambani. • "Think.This is an unmistakable Reliance hallmark espoused both by the founder Chairman Sh. It is evident that Reliance Industries is where it is today because of Innovation in thinking and execution. carpenters. Anticipate.Reliance speed is legendary now." • "Dreams and Vision are the most potent fuels in the world.Mistakes are never frowned upon. "Every transformation initiative will face resistance.
Reliance Communications has a reliable.000 route kilometers of a pan-India fiber optic backbone. and consulting. This backbone was commissioned on 28 December 2002. . truly bringing about a new way of life. Reliance Communications is revolutionizing the way India communicates and networks. applications. who singlehandedly built India’s largest private sector company virtually from scratch. had stated as early as 1999: “Make the tools of information and communication available to people at an affordable cost. Today. Dhirubhai. high-capacity.ABOUT RELIANCE COMMUNICATIONS The Late Dhirubhai Ambani dreamt of a digital India — an India where the common man would have access to affordable means of information and communication. They will overcome the handicaps of illiteracy and lack of mobility. data and video) digital network. It is capable of delivering a range of services spanning the entire infocomm (information and communication) value chain. though sadly after his unexpected demise on 6 July 2002.” It was with this belief in mind that Reliance Communications (formerly Reliance Infocomm) started laying 60. the auspicious occasion of Dhirubhai’s 70th birthday. including infrastructure and services — for enterprises as well as individuals. integrated (both wireless and wireline) and convergent (voice.
Generally good working capital policy (i. . under conditions of certainty) is considered to be one in which holdings of cash. and accounts payables are minimized. and 2) How current assets will be financed.e. fixed assets. inventories.REVEIEW OF LITERATURE FOR WORKING CAPITAL Working capital policy refers to the firm's policies regarding : 1) Target levels for each category of current operating assets and liabilities. securities.
lead times. inventories. (2008). are known). Larger amounts of cash. firms have little reason to hold more working capital than a minimum level. 2000). accounts receivables. However the picture changes when uncertainty (i. marketable securities. firms will also attempt to increase their accounts payable balances as a means of financing increased levels of current operating assets. Under conditions of certainty (i. Larger amounts would increase the level of operating assets. payment periods. Firms which are in high growth stages will face the challenge of maintaining the necessary level of operating assets to support subsequent growth. sales. without any increase in profit. From the above reviews it can be concluded that many researches have been conducted before relating to the concept of working capital but no researches have been conducted to study the working capital management of Reliance Industries Limited. in its “Performance Analysis of Companies (April-June 2008)” has analyzed the Indian telecom industry in the awake of recent global recession and its overall impact on the Indian economy. Additional holdings may be needed to enable the firm to deal with departures from the expected values. while at the same time attempting to maintain adequate performance indicators. and so on. 1997). This gap has been fulfilled by this research report which gives an practical insight into the concept of working capital management. and fixed assets will be needed to support increased sales Required levels will be based on expected sales levels and expected order lead times. LITERATURE REVIEW FOR TELECOM INDUSTRY Cygnus Business Consulting & Research Pvt. Further.e. resulting in lower return on assets and a lower return on equity. With almost 5-6million .The level of accounts receivables should be used as a means of stimulating sales and other income. overall. costs. uncertain growth) is introduced (Brigham and Houston. securities.e. Ltd. between level of working capital and operating performance as measured by operating returns and operating margins (Peterson and Rajan. increase the need for external funding. Previous literature on working capital management has found a negative association.
regulator. The National Telecom Policy 1994 spelt out decent objectives for reform but tragically its implementation was entrusted to the DOT. Building local content. • T. describes the role that information and communication technologies are playing for Indian society to educate them formally or informally which is ultimately helping India to emerge as an information society. Rao (2000). • Internet service providers in India. would help in their sustainability. Shaped by legislation dating back to the colonial era and post Second World War socialist policies. At the heart of the problem lay the monopoly by the government’s Department of Telecommunications (DOT) in equipment. connecting issues. He discusses the question: ‘Why did India get it so wrong? and What India should do now? • Thomas (2007). provide a broad view of the role of an Internet service provider (ISP) in a nascent market of India. the Indian telecom industry is expected to maintain the same growth trajectory. this article aims to identify the state’s initial reluctance to recognize telecommunications provision as a basic need as against the robust tradition of public service aligned to the postal services and finds hope in the renewal of public service telecommunications via the Right to Information movement.H. The findings of the paper suggests that public service in telecommunication is a relatively ‘‘new’’ concept in the annals . foreknowledge of new Internet technologies. This created an untenable situation in which the DOT became policymaker. and published information as its research material. Singh (2005). in India has been bungled. competitiveness. The article follows the methodology of studying the history of telecommunications approach that is conversant with the political economy tradition. operator and also arbitrator in disputes between itself and licensed competitors. and the country is witnessing wild momentum in the telecom industry. It uses archival sources. Chowdary (1999) discusses how Telecom reform. personal correspondence. networks and services. • The role of technology in the emergence of the information society in India.subscribers are being added every month. etc. in his article describes the contribution made by telecommunications in India by the state and civil society to public service. licenser. by the mid-1980s India realized that its poor telecommunications infrastructure and service needed reform. or demonopolization.
GROWTH IN SEGMENTS According to a Frost & Sullivan industry analyst.89 million at the end of December 2008. the total wireless subscriber base stood at 346. Further. fixed line revenues are expected to touch US$ 12.. However. India is likely to remain the world's second largest wireless market after China in terms of mobile connections. critical account of public service telecommunications in India and suggests that it can be strengthened by learning gained from the continual renewal of public service ideals and action by the postal services and a peoplebased demand model linked to the Right to Information Movement.2 billion. The article provides a reflexive. Cellular market penetration will rise to 60. according to a report by Gartner Inc. taking the total user base to 267. All studies done by the researcher suggests that the right to information movement has contributed to the revitalization of participatory democracy in India and to a strengthening of public service telecommunications.3 million new subscribers in January 2009. The Indian telecommunications industry is on a growth trajectory with the GSM operators adding a record 9. India is slated to become the largest WiMAX market in the Asia-Pacific by 2013. by 2012.5 million. according to the data released by COAI.7 per cent from 19. A recent study sees India's WiMAX subscriber base hitting 14 million by 2013 and growing . this figure does not include the number of subscribers added by Reliance Telecom. and mobile capex is likely to touch US$ 9. Fixed line capex is projected to be US$ 3.4 billion. The overall cellular services revenue in India is projected to grow at a CAGR of 18 per cent from 2008-2012 to exceed US$ 37 billion. Indian telecom operators added a total of 10. In WiMax.8 billion in India.of Indian telecommunications and that a deregulated environment along with the Right to Information movement holds significant hope for making public service telecommunications a real alternative.2 billion while mobile revenues will reach US$ 39. Further.8 per cent in 2007. According to recent data released by the COAI.66 million wireless subscribers in December 2008.
insurance products and also entertainment services. and Nexus India are also innovating with services like mobile payment options. the Indian MVAS is poised to touch US$ 2. Venture Capitalists like Canaan Partners. which is an important VAS segment. And investments in WiMAX ventures are slated to top US$ 500 million in India. Mobile advertising. According to a study by Stanford University and consulting firm BDA. there were nine deals worth US$ 41 million in 2007 in the mobile VAS space. Further. and rural markets are proving to be very receptive for such marketing. and is expected to grow rapidly at 70 per cent to touch US$ 1. according to a report by US-based research and consulting firm. offers great potential to become an important revenue source. Helion. which is likely to touch US$ 3 billion by 2012. banking. voice-based SMS and satellite video streaming. Presently.96 billion by June 2009.74 billion by 2010. and till August 2008. mobile VAS has a US$ 700 million market with a 20 per cent y-o-y growth. advertising. According to Venture Intelligence.15 billion in June 2008. MVAS in India accounts for 10 per cent of the operator's revenue. which is expected to reach 18 per cent by 2010. Currently. VALUE-ADDED SERVICES MARKET A report by market research firm IMRB stated that the mobile value-added services (MVAS) industry was valued at US$ 1. Draper Fisher Juvertson. seven deals worth US$ 91 million had already been finalized. Strategy Analytics. From the above reviews it can be concluded that many researches have been conducted before but no researches have been conducted to study the performance of leading players. This topic had been chosen keeping in mind the increasing competition in telecom industry and to study the position of . Marketers are increasingly using MVAS as a step ahead of SMSbased marketing to sell soaps and shampoos.annually at nearly 130 per cent.
Reliance communications as compared to 4 other top players. This gap has been fulfilled by this research report which gives a practical insight into the concept of working capital management. .
RESEARCH METHODOLOGY For every comprehensive research a proper research methodology is indispensable & it has to be properly conceived. To analyze the market strength of reliance communications. . The methodology adopted by me is as follows:- CHAPTER: 3(a) RESEARCH PROBLEM To know the working capital management of RIL with the help of ratio analysis.
Vodafone. • • H0: There is no significant relationship between factors and satisfaction level. To study the customer preference towards reliance communications as compared to its competitors namely Airtel. Idea. Tata Docomo. This study also provides insight of the customer preference of Reliance Communications and its market share as compared to Airtel. Tata Docomo. Idea. To suggest measures to improve its market share and positioning. CHAPTER 3(e) RESEARCH DESIGN . Find deviation of calculated from standard or Norms.CHAPTER: 3(b) HYPOTHESIS OF THE STUDY A research hypothesis is the statement created by a researcher when they speculate upon the outcome of a research or experiment. Vodafone. CHAPTER 3(d) SCOPE OF STUDY The scope of this study is to provide an insight into concept of working capital management and illustrate it by actually working capital management of RIL. For the study of customer preference towards Reliance Communications the following hypothesis was set up. H1: There is significant relationship between factors and satisfaction level. CHAPTER 3(c) OBJECTIVES OF STUDY • • • • Find out Ratios related to working capital management of RIL and compare with last 5 years.
2008-09. brochures from recharge dealers.According to Clifford Woody. on the other hand. 2006-07. The secondary data.e. 2006-07. a sample size of annual reports for 5 years 2004-05. magazines and newspapers. CHAPTER 3(g) SAMPLE SIZE For this research. profit and loss account and balance sheet for the years 2004-05. This research is divided in two parts: (i) (ii) Working Capital Management through secondary data based on certain parameters. primary and secondary. Secondary data was used for the working capital management of RIL that is company annual reports. 2008-09 were taken. are those which have already been collected by someone else and which have already been passed through the statistical process. The primary data are those which are collected afresh and for the first time. formulating hypothesis or suggested solutions. making deductions and reaching conclusions. A sample survey was conducting with the help of Scheduling Method of collecting data i. 200708. 2005-06. For this research report. in part one. organizing and evaluating data. collecting. 2005-06. 2007-08. and at last carefully testing the conclusions to determine whether they fit the formulating hypothesis. The enumerator in this method helps the respondents in recording their answers to various questions in the said schedules. and thus happen to be original in character. primary data was collected through questionnaires from customers and recharge dealers of sector 8 and 9 and there was no bias on the part of the enumerator while selecting the sample for the analysis concerning Reliance Competitors. “research comprises defining and redefining problems. an exploratory research based on a survey of the concerning literature. CHAPTER 3(f) SOURCES OF DATA There are two types of data viz. personally the enumerator visited and got the questionnaires filled from the respondents. .
. This of working capital management is based solely upon the annual reports of the company in hard copy and through company website. Ratio analysis was used for determining the working capital management of RIL. Only 5 companies could be compared for the market analysis in order to avoid complexity of data. graphs and pie charts.For the second part. The sample size of 100 is very small and more than that could not be possible. Hypothesis testing through Chi Square test was used in Customer Preference Towards Reliance Communications. a sample size of 100 respondents was taken out of the total customers using mobile phones. The study was only based on the survey of respondents in CHANDIGARH and no other area could be undertaken for the survey due to lack of transport and time. CHAPTER 3(j) LIMITATIONS OF THE STUDY Following were the limitations of the study: Time was limited. CHAPTER 3(h) SAMPLE AREA The sample area was Chandigarh and involved respondents coming to recharge dealers in sector 8 and 9 and the residents of sector 8. CHAPTER 3(i) STATISTICAL TOOLS USED The various statistical tool used were data distribution tables.
(WORKING CAPITAL MANAGEMENT OF RIL) CURRENT RATIO .
. ACID-TEST RATIO DEBTORS TURNOVER RATIO CREDITORS TURNVOER RATIO INVENTORY TURNOVER RATIO NET WORKING CAPITAL RATIO DEBT COLLECTION RATIO STATEMENT OF RATIO ANALYSIS CURRENT RATIO It is also known as “working capital ratio” .It is a measures of short-term financial strength of the business and shows whether the business will be able to meet it’ s current liabilities as when they mature.
income tax liabilities and long term debt maturity in current year.05 = Rs.06 = Rs.07 Rs.96:1 = 1. 23417. short term bank loan.07 = Rs. a current ratio should be or slightly more. 28452. It focuses the strong of weak position of the company.95 = 2.51 2006 .09 = Rs. For the year: 2008 .51 Rs. 12563. accrual expenses. 24574. 13283.50 2004 . 51488.53 2005 .87 Rs. 29913. bills payable. inventory. 35756. Current ratio is a measure of the firm’s short term solvency.14:1 = 1.61:1 .98 2007 . It indicate the availability of current assets in rupee of current liabilities.Current Assets including assets which can be converted in to cash easily and itself like market securities debtors. 16865. 58746. Current Liabilities included creditors. As a conventional rule.45 Rs. In short it can be said as all obligation within a year are included in current liabilities. prepaid expenses etc.77:1 = 2.08 = Rs.19:1 = 1.35 Rs.
YEARS 2008-09 2007-08 2006-07 2005-06 2004-05 1.5 .14:1 CURRENT RATIO INTERPRETATION: IO 2.61:1 2.96:1 2.19:1 1.77:1 1.
08:1 Rs.19:1 Rs. This is every existing standard of liquidity and it is satisfaction if the ratio is 1.It is generally believed that 2:1 ratio shows a comfortable working capital position. But in the other year the ratio is nearer to 1:2 so we can say that the company having comfortable working capital position.15:1 2004 . A current ratio is 1. 16865. 2007 . 29913.19126.50:1. For the year: 2008 .08 = 35756.82 Rs.61 = 1. 23417.09 = Rs.87 . 28452. Company has maintained this ration and increased it year by year.98 Rs.38:1 2006 .07 – 20109. ACID-TEST RATIO The measure of absolute liquidity may be obtained only cash and bank balance as well as only ready marketable security with liquid liabilities.51 – 7412.50 = 1.51 Rs.06 = Rs.14 = 2.35 – 12136. 51488. The tendon committee appointed by RBI had wide recommended a current ratio of 2:1.58:1 .07 = Rs.05 = Rs. 58746. 12563. 24574.88 = 1.61 in the current year.51 = 1.53 2005 .45 – 10119.
4 0.4 1.Rs. YEARS 2008-09 2007-08 2006-07 2005-06 2004-05 13283.15:1 1.58:1 ACID-TEST RATIO 1.8 0.95 ACID-TEST RATIO 1.8 1.2 0 2008-09 2007-08 2006-07 YEA RS 2005-06 2004-05 ACID-TEST RATIO ACID-TEST RATIO .05:1 1.38:1 1.08:1 1.6 1.2 1 0.6 0.
97 2007 .66 = 22. 81211.30 2006 .82:1 = 19. Higher ratio indicates weak collection policy of the firm. 66051. Over all the acid-test ratio of last five year is very satisfactory so we can conclude that the absolute liquidity of the Reliance Industries Limited is in favour.05 = Rs. the less satisfactory position of the firm.01 = 31. 4844. 111692.21:1 Rs.30 Rs. It shows the efficiency of the collection policy of the firm.33 Rs.92:1 . The higher the ratio. 3732.42 2005 .60:1 Rs.72 Rs. 4163. 3927. DEBTORS TURNOVER RATIO This ratio shows the proportion of sales to average receivables.07 = Rs. 137146.08 as compare to 1. For the year: 2008 .08 = Rs.62 2004 .06 = Rs. 6068. 151224.50:1 = 29.81 = 16.38 in the previous year.INTERPRETATION: Acid-test ratio is near to one in current year that is 1.09 = Rs.
21:1 22. DEBTORS TURNOVER RATIO .60:1 29. In the year 2008-09 it is 31. So some improvement is needed.82:1 DEBTORS TURNOVER RATIO 35 30 25 20 15 10 5 0 2008-09 2007-08 2006-07 2005-06 2004-05 YEARS DEBTORS TURNOVER RATIO INTERPRETATION: We know that the higher Debtor’s turnover ratio is not good for the firm.21:1 but in the previous year it was 22.YEARS 2008-09 2007-08 2006-07 2005-06 2004-05 DEBTORS TURNOVER RATIO 31.50:1 16.92:1 19.60:1.
62:1 . 92301. 23417.43 Rs. CREDITOR’S TURNOVER RATIO : Creditor’s turnover ratio shows the proportion of purchase to account payable number of days within which we make payment to our creditors for credit purchases estimated the creditors ratio if this ratio is higher it means company has to check whether company is making payment within credit period available.09 Rs.47:1 = 4.16 = 3.95 = 3.96:1 = 5. 69043. 35756. 108270 Rs.33:1 Rs.50 2004 . 118961.92 Rs. 13283.07 = Rs.06 = Rs.53 2005 .49:1 = 5.09 = Rs. 52715.51 2006 . If it is making payment before the due date means the company is not taking full advantage of it credit period and if company making the payment the period that indicates that the company is not taking the benefit of discount allowed.08 = Rs.05 = Rs. 16835. 12563. For the year: 2008 .98 2007 .
33:1 4.2005.49:1 3.2007.47 5.200409 08 07 06 05 YEARS CREDITOR’S TURNOVER RATIO 5.62:1 5.47:1 5.2006.49 4.96 .YEARS CREDITOR’S TURNOVER RATIO 2008-09 2007-08 2006-07 2005-06 2004-05 3.62 3.96:1 CREDITOR’S TURNOVER RATIO 6 5 4 3 2 1 0 2008.33 3.
151224.09 = Rs.01 = 7.82 2004 . 19126. 81211.33 Rs. The creditors’ turnover ratio is 3. 137146.51 2005 .51 times Rs. The ratio is important in joining the ability of management which it can move the stock.07 = Rs.88 = 8.33 in 2008-09 as compare to 2007-08 the ratio is 4.17 times Rs.91 times = 8 times = 9.20 times .72 Rs.61 2007 . 20109. For the year: 2008 .05 = Rs. 66051. 10119.INTERPRETATION: Higher Ratio of creditor turnover forces the company to check that payment is made with in credit period properly or not.06 = Rs. 12136. The number of times the average stock is turnover during the year is known as stock turnover.14 2006 . 111692.66 = 7. INVENTORY TURNOVER RATIO This ratio is also known as “stock turnover ratio”.30 Rs.62 which is higher than the other years. It is computed by deciding the sales by the inventory.08 = Rs. 7412.
8 0 70 YA S ER I V N O YT R O E NE T R UN V R R TO AI 20.00 times 8.6 0 50 7 1 . .1 9 .17 times 9. The ratio is joining the ability of management with which it can move the stock.2 8 INTERPRETATION: Higher the ratio more profitability the business would be.9 0 80 20.7 0 60 20.51 times 7. Inventory turnover ratio is highest in the year 2006-07 is 9.51 which is little lower than previous year but it is obvious that in heavy industries like Reliance Industries Limited have lower ration as compare to FMCG.20 times 8.20 as compare to the other year but in current year it is 7.YEARS 2008-09 2007-08 2006-07 2005-06 2004-05 INVENTORY TURNOVER RATIO 7.5 7 7 .91 times INVENTORY TURNOVER IN E T R T R O E R T V N O Y U N V R A IO 1 0 RATIO 8 6 4 2 0 20.
It is found for measuring firm liquidity.83 times = 10 times = 9. It also measures the firm potential reserve of funds.83 times Rs.09 = Rs. 151224. For the year: 2008 .85 times = 5. 11320 = 5.07 = Rs. 81211. NET WORKING CAPITAL TURNOVER RATIO Net working capital turnover ratio is obtained by net working capital joining to sales. 24622.57 times . 111692. 66051. 11334. 137146.95 2005 .66 Rs. 19874.05 = Rs.30 Rs. The excess of current assets over current liabilities is called working capital. 8119.06 2007 .06 = Rs.33 Rs.08 = Rs.72 Rs.01 = 5.97 2004 .18 2006 .
5 7 .7 06 0 20. For the year: 2008 .6 05 0 20.09 = 365 days = 11 days . 8 57 . The ratio is computed by dividing the Debtor’s turnover ratio in to 365 days.00 times 5.57 times 9.60 times 5.57 in 2007-08 but the best favorable ratio is in 2005-06 which is 10 times. So it means that higher the ratio better the working capital condition of the company. 8 1 0 95 .85 times 10. DEBTOR COLLECTION PERIOD The Debt Collection shows the number of days taken to collect the debts of credit sales.YEARS 2008-09 2007-08 2006-07 2005-06 2004-05 WORKING CAPITAL TURNOVER RATIO 7. It shows the efficiency and collection policy of the company.60 in 2008-09 and 5.5 04 0 YEARS 20. The ratio is 7.9 08 0 53 . 6 WRI G AI A OK CP L N T T ROE RT UN VR AI O WRI G OK N CP A AI L T T ROE UNV R RT AI O INTERPETATION: As per the balance sheet data of the creditor the working capital turnover ratio is different for the different years.8 07 0 20.83 times WRI G A I A TROE RT OK CP L UN V R AI N T O 20.
71 days 20.82 = 21.05 = 365 days 16.71 days INTERPRETATION: .71 days = 12.50 2004 .70 days = 18.92 2005 .15 days YEARS 2008-09 2007-08 2006-07 2005-06 2004-05 DEBTORS COLLECTION PERIOD 11.06 = 365 days 19.21 2007 .20 days 18.15 days 12.31.08 = 365 days 22.07 = 365 days 29.00 days 16.60 2006 .20 days = 16.
20 2005-06 1.96 8.19 1.96 1.47 9.82 3.33 7.85 12.60 4.60 ratio Debt collection period 11 .38 22.64 1.00 10.57 16.91 5.The collection period is highest in 2004-05 is 20. This shows the improvement in collection policy of the Reliance Industries Limited.17 5.70 Net-working capital turnover 7.21 3. STATEMENT OF RATIO ANALYSIS RATIOS Current ratio Acid-test ratio Debtor’s turnover ratio Creditor’s turnover ratio Inventory turnover ratio 2008-09 1.15 2006-07 1.71 2004-05 2.00 18.92 5.15 19.49 8.77 1.08 31. So it is very important for any company to collect the debs which this company do very well.50 5.71 days as compare to very low in 2008-09 is only 11 days.20 9.05 29.83 21.58 16.51 2007-08 2.62 7.14 1.
C O M P R E H E N S IV E A N A L Y S IS 35 30 25 20 15 10 5 0 Current ratio Acid-test ratio Debtor’s turnover ratio Inventory turnover ratio Networking capital turnover Debt collection period 2 0 0 5 -0 6 2 0 0 4 -0 5 Creditor’s turnover ratio R AT IO S 2 0 0 8 -0 9 2 0 0 7 -0 8 2 0 0 6 -0 7 TABLE 1 CONSUMER PREFERENCE TOWARDS CELL PHONE SERVICE PROVIDERS VALUES .
TABLE 2 SERVICE PREFERENCE OF RESPONDENTS ON THE BASIS OF AGE WISE . Tata Docomo and Idea respectively.S.NO 1 2 3 4 5 NAME OF THE SERVICE PROVIDER Reliance Communications Airtel Vodafone Idea Tata Docomo NUMBER OF RESPONDENTS 49 54 61 23 39 INTERPRETATION: • • Most of the Respondents prefer Vodafone followed by Airtel. Reliance Communications. The number of respondents are more than 100 because of multiple responses by the respondents.
CLASSIFICATION S. OF % OF RESPONDENTS RESPONDENT S 8 32 9 6 2 0 25 36 24 8 0 100 21-30 years NO. OF RESPONDENT S 32 34 31 2 1 100 100 % OF RESPONDEN TS 32 34 31 2 40 years and Above NO.8 30.33 50 0 0 100 UPTO 20 years.87 0 1. OF RESPONDENT S 1 2 3 0 0 6 % OF RESPONDENT S 16.2 33. OF RESPONDENT S 2 4 1 0 0 7 % OF RESPONDENT S 28. OF RESPONDENTS 21 19 21 0 1 62 % OF RESPONDENTS 33.NO NAME OF THE SERVICE PROVIDER 1 2 3 4 5 Reliance Communications Airtel Vodafone Idea Tata Docomo TOTAL 31-40 years NO.14 14.29 0 0 100 .67 33.6 100 TOTAL NO.57 57. NO.
1. 41 and above – 57% of the respondents are using Airtel and 28. 36%) are using Airtel folllowed by Reliance users(32%). TABLE 3 COMPOSITION OF RESPONDENTS ON THE BASIS OF MARITAL STATUS S.87% respectively) and 30% of the respondents are using Airtel.e. majority of them (i. Consumers in the age group of 21 – 30 years 57% of respondents are mostly prefer Vodafone and Reliance(33.INFERENCE: • • Among respondents upto 20 years of age group. 2 TOTAL MARITAL STATUS MARRIED UNMARRIED NUMBER OF RESPONDENTS 33 67 100 % OF RESPONDENTS 33 67 100 . • • 50% of customers are using Vodafone. who are in the age group of 31 – 40 years.NO.57% of respondents are using Reliance.8% and 33.
NO. TABLE 4 COMPOSITION OF RESPONDENTS ON THE BASIS OF EDUCATION QUALIFICATION S. but the unmarried respondents are using cell phones in 67%.INFERENCE: The married respondents are using cell phones in 33%. 2 3 4 TOTAL EDUCATIONAL QUALIFICATION UPTO HIGHER SENIOR SECONDARY GRADUATES PROFESSIONALS OTHERS NUMBER OF RESPONDENTS 32 61 7 0 100 % OF RESPONDENTS 32 61 7 0 100 . 1.
1.77% (upto HSC) respondents are using cell phones.50% (graduates) are using cell phones and 30.INFERENCE: The majority of the respondents 62. TABLE 5 COMPOSITION OF RESPONDENTS ON THE BASIS OF CCUPATION S. 2 3 4 5 6 TOTAL OCCUPATION BUISNESS PROFESSIONAL EMPLYOEE HOME MAKER STUDENT OTHERS NUMBER OF RESPONDENTS 12 2 33 8 44 1 100 % OF RESPONDENTS 12 2 33 8 44 1 100 .NO.
000 Rs. home makers (8%) and others (1%). followed by employees (33%).INFERENCE: 44% of the total sample who are students are using cell phones. 15.001 to Rs. 5. TABLE 6 COMPOSITION OF RESPONDENTS ON THE BASIS OF FAMILY INCOME (PER MONTH) S. businessmen (8%). 10.000 NUMBER OF RESPONDENTS 31 45 13 11 100 % OF RESPONDENTS 31 45 13 11 100 . 15.001 to Rs.NO.000 Above Rs. 5. 1. 2 3 4 TOTAL OCCUPATION Less than Rs. 10. 000 Rs.
5. 10. 15. 2 3 4 5 6 OCCUPATION Family Members Neighbours Relations Friends Advertisement Dealers NUMBER OF RESPONDENTS 40 2 5 37 4 6 % OF RESPONDENTS 40 2 5 37 4 6 . On the other hand.000 – Rs. 10.000 and 11% get Rs. and 31% of respondents are get monthly income as less than Rs. 13% of the respondents get a monthly income of Rs.NO. 1.INFERENCE: 45% of respondents are get monthly income of Rs. TABLE 7 TABLE SHOWING SOURCE OF INFORMATION TO SELECT SERVICE PROVIDERS S.5.10.000.000 and above.000 – Rs.000.
Dealers and Others (6% both).7 TOTAL Others 6 100 6 100 INFERENCE: The most influencing factor for choosing the service provider according to the respondents is Family Members (40%) followed by Friends (37%). Advertisement (4%) and Neighbours (2%). TABLE NO: 8 . Relations (5%).
2 TOTAL PURPOSE For Business For Personal NUMBER OF RESPONDENTS 42 58 100 % OF RESPONDENTS 42 58 100 INFERENCE: 42% of respondents are using cell phones for their business.COMPOSITION OF RESPONDENTS ON THE BASIS OF PURPOSE OF PURCHASE OF THE CELL PHONES S. .NO. and 58% of respondents are using cell phones for their personal usage. 1.
NO SERVICE PROVIDERS PREPAID POST PAID TOTAL NO. OF RESPONDENTS 49 54 61 38 24 1 2 3 4 5 Reliance Communnications Airtel Vodafone Idea Tata Docomo 21 51 52 37 24 28 3 9 1 2 .TABLE 9 TYPE OF CONNECTION PEFERRED S.
INFERENCE: Majority of people prefer prepaid connections with Vodafonel at top followed by Airtel.OF RESPON DENTS 61 63 58 61 UNAWARE NO.OF RESPOND ENTS 100 100 100 100 1 2 3 4 % OF RESPON DENTS 61 63 58 61 % OF RESPON DENTS 39 37 42 39 % OF RESPONDEN TS 100 100 100 100 5 54 54 46 46 100 100 . TABLE 10 AWARENESS OF VARIOUS SCHEMES S.OF RESPON DENTS 39 37 42 39 TOTAL NO.No VARIOUS SERVICES SCHEME OF INITIAL PURCHASE BALANCE OF TALK CHARGES PERIODICA L OFFERS CALL WAITING AND CALL DIVERTING OPTION MODES OF PAYMENT AWARE NO. Idea and Tata Docomo. People prefer postpaid connection of Reliance but substantial but less people prefer prepais connection for Reliance.
58% of respondents are aware about various periodical offers and 39 % are unaware of call waiting and call diverting option.INFERENCE: 63% of respondents are aware about the talk charges. 2 3 4 5 FACTORS Deposit Amount Brand Image Availability Credit Facility NUMBER OF RESPONDENTS 13 45 10 for 8 17 % OF RESPONDENTS 13 45 10 8 17 Connection Customer Care Service .NO. 46% of respondents are unaware about the modes of payment and 61% of respondents only aware about the schmes of initial purchase TABLE NO: 11 INFLUENCING FACTORS TO SELECT THE SERVICE PROVIDER S. 1.
TABLE NO: 12 . 13% by Deposit Amount. 10% by Availability. 8% by Credit Facility for Connection and 7% by Service Charges.6 TOTAL Service Charges 7 100 7 100 INFERENCE: 45% of respondents are purchasing a particular service provider by its Brand Image. 17% of respondents are choosing the particular service provider by their customer care service.
N O 1 2 3 4 5 SERVICE PROVIDER Reliance Comunication s Airtel Vodafone Idea Tata Docomo HIGHLY SATISFACTOR Y 28 30 38 10 14 SATISFACTOR Y 12 20 13 5 7 NON SATISFACTOR Y 9 4 10 13 3 TOTA L 49 54 61 38 24 INFERENCE: .CONSUMER’S SATISFACTION LEVEL ON THE BASIS OF PRICE OF THE CELL PHONE PROVIDERS S.
People using Idea service are not satisfied in majority out of the total number of respondents using Idea service. Tata Docomo and Idea respectively. reliance Communications.N O 1 2 3 4 5 SERVICE PROVIDER Reliance Comunication s Airtel Vodafone Idea Tata Docomo HIGHLY SATISFACTOR Y 31 45 39 9 15 SATISFACTOR Y 12 5 12 5 6 NON SATISFACTOR Y 6 4 10 14 3 TOTA L 49 54 61 38 24 INFERENCE: .38% of the respondents are highly satisfied for the price of Vodafone followed by Airtel. TABLE NO: 13 CONSUMER’S SATISFACTION LEVEL ON THE BASIS OF AFTER SALES SERVICE OF THE SERVICE PROVIDER S.
TABLE NO: 14 CONSUMER’S SATISFACTION LEVEL THE BASIS OF PERIODICAL OFFERS PROVIDED BY THE SERVICE PROVIDERS S. Reliance.Majority of the respondents (45) are highly satisfied about after sales service by Airtel. followed by Vodafone.N O 1 2 3 4 5 SERVICE PROVIDER Reliance Comunication s Airtel Vodafone Idea Tata Docomo HIGHLY SATISFACTOR Y 33 25 42 9 14 SATISFACTOR Y 12 12 5 5 7 NON SATISFACTOR Y 4 1 14 14 3 TOTA L 49 54 61 38 24 INFERENCE: . 12 (Reliance users) and 5 (Airtel users) are satisfied (average) by the after sales service. Tata Docomo and Idea respectively. 14 respondents of total Idea users are dissatisfied by the after sales service whereas only 6 and 4 users of Reliance and Airtel are dissatisfied.
and only 9 respondents for Idea. TABLE NO 15 CONSUMER’S ATTITUDE TOWARDS THE IMPORTANCE OF CELL PHONES CALCULATION OF SATISFACTORY SCORES S.NO. 12 respondents are satisfied (average) of Airtel’s and Reliance’s periodical offers. 14 respondents of Vodafone and Idea are dissatisfied whereas 4 and 1 respondents are dissatisfied for Reliance and Airtel respectively. 1 2 3 TOTAL NATURE Necessity Status Luxury NUMBER OF RESPONDENTS 64 25 11 100 %age OF RESPONDENTS 64 25 11 100 INFERENCE: .On the basis of periodical offers 42 of Vodafone respondents followed by 33 of Reliance are highly satisfied.
clarity and Service. CHI-SQUARE TEST . OF RESPONDENTS 42 32 45 56 INFERENCE: Majority of respondents face difficulty in their cell phone connection due to Network problem followed by Coverage problem. TABLE 16 REASONS FOR FACING DIFFICULTY IN CELL PHONE CONNECTION REASONS Coverage Service Clarity Network Busy NO.64% of the respondents state that cell phones are necessity. 25% state cell phones as a status symbol and 11% of respondents are only states that cell phones are luxury.
2 21-30 yrs.16 0.Chi-square test is one of the simplest and most widely used nonparametric tests in statistical work. and above 1 TOTAL 18 LEVEL OF SATISFACTION MODERATE LOW 22 1 34 13 6 0 4 2 66 16 TOTAL 25 62 6 7 100 H0: There is no significant relationship between age and level of satisfaction. 0 40 yrs.16 1.50 3. TABLE NO.25 14.05 .07 (O-E)2/E 1.26 (O-E)2 6.39 1.1 CHI-SQUARE ANALYSIS ON THE RELATIONSHIP BETWEEN AGE AND SATISFACTION WITH REGARDING THE CELL PHONE SERVICE PROVIDER AGE HIGH UPTO 20 yrs.32 1. The quantity describes the magnitude of the discrepancy between theory and observation. Chi – square test (χ2) = Σ (O – E)2 / E Degrees Of Freedom = V = (R – 1) (C -1) Were.7 1. ‘O’ = Observed Frequency ‘E’ = Expected Frequency (Emn = total of column ‘m’ * total of row ‘n’) Total number of frequencies ‘R’ = Number of Rows ‘C’ = Number of Columns For all the chi-square test the table value has taken @ 5% level of significance.26 E (O-E) . It is a method to test the relationship between the theoretical (hypothesis) & the observed value.2.1.84 .50 11.08 . 5. This test was first used by Karl Pearson in the year 1900.08 0.0. H1: There is significant relationship between age and level of satisfaction. O 2 15 0 1 4. 15 31-40 yrs. Q11 has been used for the chi-square test.08 1.
5 16.83 1.69 Since some expected values are less than 5 we are clubbing 1 st. 11th and 12th frequencies: O 15 16 22 34 13 TOTAL 11.92 E (O-E) 3.83 1.96 0.16 21.96 4.5 4.5 .5 9. 7th.92 3.591 Number of degree of freedom: ndf = (row-1) (column –1) = (3) (2)= 6 Table value of χ2 at 5% level of significance = 12.08 2.25 46.62 -3 3.38 9 9.12 5.6.96 6.5 (O-E)2/E 1.0.08 (O-E)2 14.92 9.3rd. TABLE NO.14 1. 8th. 9th.32 1.96 0.82 2.5 0.62 4 9.59) hence there is no significant relationship between level of satisfaction and age.591 χ2 = Σ (O-E)2 / E = 6.50 40.341 1.92 0.50 40.0.92 0.59 Conclusion: H0 is accepted since the calculated value of χ2 (6.22 34 6 4 1 13 0 2 16.7 30.2 CHI-SQUARE ANALYSIS ON THE RELATIONSHIP BETWEEN MARITAL STATUS AND SATISFACTION WITH REGARDING THE CELL PHONE SERVICE PROVIDER AGE Married Unmarried TOTAL HIGH 4 29 33 LEVEL OF SATISFACTION MODERATE LOW 26 3 25 13 51 16 TOTAL 33 67 100 .88 30.96 0.5.25 30.16 0.04 .14 0.05 0.25 46.08 .77 1.4th.5 5.25 0.6.50 . 5.96 1.591) less than the table value of χ2 (12.84 .82 3.
5 84 84 5.11 16.43) more than the table value of χ2 (5.83 34.3 CHI-SQUARE ANALYSIS ON THE RELATIONSHIP BETWEEN EDUCATIONAL QUALIFICATION AND SATISFACTION WITH REGARDING THE CELL PHONE SERVICE PROVIDER EDUCATIONAL HIGH QUALIFICATION HSC 12 GRADUATE PROFESSIONAL OTHERS TOTAL 34 2 0 48 LEVEL OF SATISFACTION MODERATE LOW 19 23 3 0 45 1 4 2 0 7 TOTAL 32 61 7 0 100 .17 5.89 22.17 .15 4.20 (O-E)2/E 4. 5.72 E (O-E) .H0: There is no significant relationship between gender and level of satisfaction.43 Number of degree of freedom: ndf = (row-1) (column –1) = (1) (2) = 2 Table value of χ2 at 5% level of significant = 5.17 . TABLE NO.46 0.28 (O-E)2 47.99 Conclusion: H1 is accepted since the calculated value of χ2 (15.5 47.89 9.20 5.43 χ2 = Σ (O-E)2 / E = 15.99 2.89 6.49 15.6.98 0.28 10. O 4 29 26 25 3 13 TOTAL 10. H1 : There is significant relationship between gender and level of satisfaction.9.28 2.36 2.99) hence there is significant relationship between level of satisfaction and marital status.2.
74 14.H0: There is no significant relationship between educational qualification and level of satisfaction.45 3.26 4.47 0.72 0.8 21.49 0 E (O-E) . 5.4 . TABLE NO.17 11.40 27.74 3.3.36 20.51 15.29 175.24 4.58) less than the table value of χ2 (18.104.22.168 E χ2 = Σ (O-E)2 / E = 11.45 13.36 0 14.45 .16 19.59 Conclusion: H0 is accepted since the calculated value of χ2 (11.51 (O-E)2 11.28 (O-E)2/E 0.58 Number of degree of freedom: ndf = (row-1) (column –1) = (3) (2) = 6 Table value of χ2 at 5% level of significant = 12.15 0 2.48 1.60 . H1: There is significant relationship between educational qualification and level of satisfaction O 12 34 2 0 19 23 3 0 1 4 2 0 MERGING: O 12 34 19 23 12 TOTAL 15.36 13.80 2.27 0.36 20.59) hence there is significant relationship between level of satisfaction and educational qualification.40 27.74 8.
40 13.63 7.CHI-SQUARE ANALYSIS ON THE RELATIONSHIP BETWEEN OCCUPATION AND SATISFACTION WITH REGARDING THE CELL PHONE SERVICE PROVIDER EDUCATIONAL QUALIFICATION BUISNESS 6 PROFESSIONAL EMPLYOEE HOME MAKER STUDENT OTHERS TOTAL 1 15 3 35 1 61 HIGH LEVEL OF SATISFACTION MODERATE LOW 5 1 15 4 5 0 30 1 0 3 1 4 0 9 TOTAL 12 2 33 8 44 1 100 H0 There is no significant relationship between occupation and level of satisfaction.13 4. H1 : There is significant relationship between occupation and level of satisfaction O 6 1 15 3 35 1 5 1 15 4 4 0 1 0 3 1 4 0 MERGING: O 24 22.32 20.60 0.08 E .72 3.88 (O-E)2/E 0.61 3.37 (O-E) (O-E)2 1.09 E 1.18 2.97 0.32 1.88 26.20 0.96 0.08 0.90 2.30 1.60 9.84 0.
40) less than the table value of x2 (18. 3 15. .24 1.14 2.63 11. 22 000 Rs.13 .32 .1.01 0.000 HIGH 16 LEVEL OF SATISFACTION MODERATE LOW 13 20 5 6 44 2 3 5 3 13 TOTAL 31 45 13 11 100 Rs.13 26. 5.10 1.55 26. TABLE NO.30) hence there is no significant relationship between level of satisfaction and occupation.13. 15.30 Conclusion: H0 is accepted since the calculated value of χ2 (11.32 20.32 191.6 15 35 15 TOTAL 7. 10.001 to Rs.5. 5. H1: There is significant relationship between monthly income and level of satisfaction.40 χ2= Σ (O-E)2 / E = 11.40 Number of degree of freedom: ndf = (row-1) (column –1) = (5) (2) = 10 Table value of χ2 at 5% level of significant = 18.31 7. 5.000 Above Rs. 10.84 9.001 to Rs.000 TOTAL 2 43 H0: There is no significant relationship between monthly income and level of satisfaction.90 .74 26.84 5.5 CHI-SQUARE ANALYSIS ON THE RELATIONSHIP BETWEEN MONTHLY INCOME AND SATISFACTION WITH REGARDING THE CELL PHONE SERVICE PROVIDER MONTHLY INCOME Less than Rs.
59 .002 0.64 .20 0.69 1.03 0.41 0.43 E MERGING: O E (O-E) 18 16.72 3 5.0.59 Conclusion: H0 is accepted since the calculated value of χ2 (3.59 4.13 7.O 16 22 3 2 13 20 5 6 2 3 5 3 13.80 5.72 .72 4.09 1.72 1.33 19.84 4.12 (O-E)2/E 0.10 0.64 7.59) hence there is no significant relationship between level of satisfaction and monthly income.03 5.2.28 16 13. 5.2.702 .35 2.71 0.702) less than the table value of χ2 (12.53 0.73 13.80 0.702 Number of degree of freedom: ndf = (row-1) (column –1) = (3) (2) = 6 Table value of χ2 at 5% level of significant = 12. TABLE NO.65 3 5.59 13 13.67 22 19.35 5.04 0.85 TOTAL χ2= Σ (O-E)2 / E = 3.36 1.64 19.85 1.0.39 3.2 5 5.02 6.52 8.6 (O-E)2 1.33 2.85 .64 20 19.
91 174.30 15. H1: There is significant relationship between service providers and level of satisfaction.2.71 10.33 5.61 17.CHI-SQUARE ANALYSIS ON THE RELATIONSHIP BETWEEN SERVICE PROVIDERS AND SATISFACTION NAME OF THE SERVICE PROVIDER Reliance HIGH 38 LEVEL OF SATISFACTION MODERATE LOW 8 3 TOTAL 49 Communications Airtel 49 4 1 54 Vodafone 23 35 3 61 Idea 13 7 3 23 Tata Docomo 12 18 9 39 TOTAL 135 72 19 226 (The total number of respondents here is more than 100 because of multiple responses by respondents.3 .74 1.27 4.13 13.53 4.13.26 4.3.24 242.25 12.28 15.74 .12 .88 O .0.12 4.2 280.48 3.13 (O-E)2 4.44 5.11.33 12.27 32.69 57.63 0.) H0: There is no significant relationship between service providers and level of satisfaction.42 0.20 15.69 4.13 8.26 36.87 12.30 3. O 38 49 23 13 12 8 4 35 7 16 18 38 3 49 1 23 3 13 3 12 9 8 4 35 7 18 3 1 3 E 29.54 5.43 E 7.61 17.13 12.93 23.73 16.42 29.55 127.0.44 .33 13.51 0.04 5.57 .20 19.30 2.12 32.54 .33 2.76 0.42 4.7.14 1.44 13.20 19.1.11 31.54 (O-E)2/E 0.13 MERGING: (O-E) 2.53 76.74 23.54 36.23 180.74 .13.43 7.60 8.9 0.02 2.58 .61 .48 0.
14 32.98 17.28 1.8.40) is more than the table value of χ2 (21.82 0.72 0.92 15.28 14.4.28 5.24 4.76 16.42 Number of degree of freedom: ndf = (row-1) (column –1) = (1) (2) = 2 Table value of χ2 at 5% level of significant = 5.68 . O 16 12 24 22 2 24 TOTAL 11. TABLE NO.98 21.99 .06) hence there is significant relationship between level of satisfaction and service provider.68 10. 5.4.57 79.90 21.3 9 TOTAL 1.24 .92 (O-E)2 17.59 9. H1: There is significant relationship between use of cell phone and level of satisfaction.11 1.06 Number of degree of freedom: ndf = (row-1) (column –1) = (6) (2) = 12 Table value of χ2 at 5% level of significant = 21.7 CHI-SQUARE ANALYSIS ON THE RELATIONSHIP BETWEEN USE OF CELL PHONE AND SATISFACTION PURPOSE For Buiness For Personal TOTAL HIGH 16 12 28 LEVEL OF SATISFACTION MODERATE LOW 24 2 22 24 46 26 TOTAL 42 58 100 H0: There is no significant relationship between use of cell phone and level of satisfaction.40 χ2= Σ (O-E)2 / E = 21.24 19.82 5.06 Conclusion: H1 is accepted since the calculated value of χ2 (65.93 3.68 .57 (O-E)2/E 1.42 χ2= Σ (O-E)2 / E = 14.98 65.90 79.08 E (O-E) 4.72 1.32 26.92 8.11 0.07 5.
Conclusion: H1 is accepted since the calculated value of χ2 (14.42) is more than the table value of χ2 (5.99) hence there is significant relationship between level of satisfaction and use of cell phone.
This chapter is allocated to express the findings of this study. Statistical tools are applied to analyze the data. It includes the result of each and every tables, charts and tests. FINDINGS FOR RELIANCE INDUSTRIES LIMITED • • • • • The company having comfortable working capital position. The absolute liquidity of the Reliance Industries Limited is in favour. The collection policy of the company is very good. The creditors turnover ratio is 3.33 in 2008-09 as compare to 2007-08 the ratio is 4.62 which is higher than the other years. Inventory turnover ratio is highest in the year 2006-07 is 9.20 as compare to the other year but in current year it is 7.51 which is little bit lower than previous year but it is obvious that in heavy industries like Reliance Industries Limited have lower ratio as compared to FMCG. • The working capital ratio is 7.60 in 2008-09 and 5.57 in 2007-08 but the best favorable ratio is in 2005-06 which is 10 times. So it indicates better working capital condition of the company. • This is an improvement in collection policy of the Reliance Industries Limited.
FINDINGS FOR RELIANCE COMMUNICATIONS ( CUSTOMER PREFERENCE) On the basis of consumer preference, majority of the peoples are preferred Vodafone and Reliance at the 3rd position. On the basis of age group, most of the respondents (33.8%), are using Reliance, who are in the age group of 21-30 years. On the basis of marital status mostly unmarried respondents are using cell phones than married respondents. On the basis of educational qualification, most of the graduates are using cell phones.
On the basis of occupation, the students and employees are using cell phones in more level. On the basis of family income, 45% of the respondents are using cell phones, who are all get family income of Rs.5, 001 – 10, 000. Majority of the peoples choose the service provider by family members influence. 4% of respondents are only influenced by advertisements. Majority of the peoples are using cell phones for personal usage. Majority of the peoples are using prepaid scheme. Majority of the people are aware of the various schemes provided by the service providers. Majority of the people keep in mind the brand image before selecting their service provider. Majority of the respondents are highly satisfied about the price of Airtel People using Idea service are not satisfied in majority out of the total number of respondents using Idea service. On the basis of after sales service, the majority of the respondents are highly satisfied in Airtel, Vodafone and Reliance respectively. On the basis of periodical offers, majority of the people are highly satisfied by Vodafone and Reliance respectively. On the basis of consumer’s attitude, majority of the people are states that cell phones are necessity to all. Reasons for facing difficulty in cell phone connection are Network problem followed by Coverage problem, clarity and Service. FINDINGS FROM CHI-SQUARE TEST • • • Chi-square test reveals that there is no significant relationship between satisfaction level and age. There is significant relationship between the marital status and level of satisfaction. There is significant relationship between education qualification and level of satisfaction.
• • • • Chi-square test reveals that there is no significant relationship between occupation and level of satisfaction. There is significant relationship between level of satisfaction and use of cell phone. Chi-square test shows that there is no significant relationship between monthly income and level of satisfaction. . H1.e. Chi-square test indicate that there is significant relationship between service provider and satisfaction level. OVERALL CONCLUSION: Since majority of the factors have significant relationship with the satisfaction level we can conclude that there is significant relationship between the factors and the satisfaction and hence we accept the alternative hypothesis of the project i.
SUGGESTIONS The recommendation & suggestion for effective management of working capital at RIL are given bellow: 1) For inventory.) The procurement for materials requisition processing should be reduced so as to minimize the lead time. .) Short term credit period availed must be reduced and sundry creditors should be paid faster.) The company must take certain steps to decrease the working capital cycle. 5. in order to improve the position. producing according to requirement and disposing off or recycling the unserviceable inventories. 2. Inventory management is a great concern for RIL especially stores and spares. the low turnover of stock may also be due to problems with generation of sales. RIL can reduce the level of stocks by resorting to phased production i.e.) RIL is suggested to maintain a balance in capacities.) It should maintain inventory at an optimum level rather than a very optimistic level. 4. 3. synchronization of various inputs availability of some materials or parts which are not easily available. The purchase manager should take proper steps for procurement of inventories. However. 6. One way can be better management of inventories.
Reliance should give more periodical offers to its customers.7. 8). Reliance Comm. . Reliance should attract the customers by reducing their price. More awareness of their services should be spread to the customers. cash discount or credit ratings. But it also has an advantage over Tata Docomo and Idea. should expand their customer base. Reliance should try to increase their after sales services and decrease their dissatisfied customers by providing good after sales services. advertisements take little part for influencing the consumers. It should try to increase post paid users. It should concentrate on good advertisements for their service because. should try to attract old people also. RIL can also consider negotiating its creditors for relaxing the debt repayment period and repaying only on or just before the expiry of the credit period. It should come up with more reasonable and attractive plans for business use. It needs to focus on providing good clarity of signals as customers prefer Airtel in terms of signal clarity. The recommendation & suggestion for effective management of working capital at RIL are given bellow: • • • • • • • • • • Reliance Comm.) Freedom should be there in deciding the credit policies.
Crimes are also increasing relating to cell phones and people should be careful. Now-a-days. This is an information era significance of information cannot be over emphasized. The inventory is a great concern for RIL and it need proper procurement and management. periodical offers to their service and the consumers get maximum benefit from their service provider. cell phones are very necessity to all. So. other current liabilities and provisions of RIL.inventories( like raw materials . Mismanagement of each or any of these components shall be detrimental to the objectives of efficient operation. Because. .sundry debtors. other current assets and current liabilities like sundry creditors. This study also attempts to find out the satisfaction of consumer regarding cell phone service providers. most of the peoples using cell phones. schemes.finished goods ). nature of activity/enterprise and duration/length of operating cycle etc.w-i-p. And complete synchronization and co ordination among the working capital components which shall contribute to optimum level of operations. it is give safety to the men and women also. But one should also not forget the disadvantages of cell phones and should try avoiding it especiaaly for children as it hampers their development mentally and can endager their health. This leads to adding new features. They have also become a status symbol for young geeration. Eligible working capital limits would be assessed by cash Budget method And Projected production method depending the market condition.The study involves practical and conceptual over view of decisions concerning current assets like cash and bank balance . scale of operation. This decade. securities and other deposits. The working capital limits would be considered only after the project nearing completion and after ensuring control over the inventory. loans and advances. profitability and maximization of overall value of the bank. service providers are increasing in more level increasing the level of competition. Was with the objective of maximizing the overall net profit of the bank.
rcom.in www.org/wiki/Working_capital www.Pandey C.R.com/html/investor/financials.trai.com/lessons/workcap/ http://en.M.org/industry/telecommunications.Kothari .ril.ibef.• • • • • • • • • • • • www.wikipedia.studyfinance.co.ril.aspx Financial Management Financial Management Research Methodology Khan & Jain I.in http://www.gov.com http://www.html Annual Report for the year 2008-2009 Annual Report for the year 2007-2008 Annual Report for the year 2006-2007 Annual Report for the year 2005-2006 Annual Report for the year 2004-2005 http://www.
) Which cell phone (Service Provider) do you possess? . a student of Rayat and Bahra Institute of Management.000/. 10. 15.000/Above Rs. I would therefore request you to give your response to the questionnaire. 000/Rs. and above • Marital Status : Married • Educational Qualification Upto HSC Graduation Professional Others _____________________________________ (Please Specify) • Occupation : Business Home maker • Family income (Per/month) : Rs.5.I am Swati Sabherwal. Kharar and this questionnaire is a part of my research on “Performance comparison of Midcap Funds”. • • • Name : Sex : Male Age : Upto 20 yrs 21-30 yrs 40 yrs. 5.000/.to 10. 000/Professional Student Employee Others Unmarried 31-40 yrs Female Less than Rs.to 15.000/- Q1.
) Why do you buy the cell phones? For business For personal Q4) Which type of scheme is most preferable by you ? Prepaid Postpaid Q5) If you have postpaid / prepaid connection mention scheme Name & Monthly rental charges ? ______________________________________________________ Q6) Are you aware of the following details relating in your connection? (Pre / Postpaid connection) SCHEME Scheme of Initial Purchase Balance of Talk Charges Periodical Offers Call Waiting and Call Diverting Option Modes of Payment AWARE UNAWARE .Reliance Communications Idea Q2.) Airtel Tata Docomo Vodafone Who influenced you to by the particular cell phone service provider ? Family Member Friends Others Neighbours Advertisement Relations Dealers Q3.
) You consider mobile as a: Necessity Status Luxury SATISFACTORY NOT SATISFACTORY Q10.) What are the reasons of difficulty you face in you cell phone connection (if any)? Coverage Network Busy Q11.) Are you satisfied with your cell phone service provider ? HIGHLY SATISFACTORY Price After Sales Service Periodical Offers Q9.Q7) What factor influenced you to decide your Cell Phones service ? Deposit amount Brand Image Availability Credit facility for your connection Customer care service Service charges Q8.) Rate the service connection you are using on the basis of some factors as follows: AGE HIGH LEVEL OF SATISFACTION MODERATE Service Clarity LOW .
31-40 yrs. 10. 15. 000 Rs.000 Rs. 15. 10. 40 yrs.001 to Rs.000 Above Rs.001 to Rs. and above Marital Status HIGH Married Unmarried EDUCATIONAL QUALIFICATION HSC GRADUATE PROFESSIONAL OTHERS EDUCATIONAL QUALIFICATION BUISNESS PROFESSIONAL EMPLYOEE HOME MAKER STUDENT OTHERS MONTHLY INCOME Less than Rs.UPTO 20 yrs. 5. 5.000 HIGH LEVEL OF SATISFACTION MODERATE LOW LEVEL OF SATISFACTION MODERATE LOW HIGH LEVEL OF SATISFACTION MODERATE LOW HIGH LEVEL OF SATISFACTION MODERATE LOW THANKYOU . 21-30 yrs.
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