CHAPTER –I

INTRODUCTION & DESIGN OF THE STUDY

Introduction

Finance is a field deals with the allocation of assets and liabilities over
time under conditions of certainty and uncertainty. Finance also applies and uses
the theory of economics at some level. Finance can also be defined as the science
of money management. At key point in finance is the time value of money, which
states that purchasing power of one unit of currency, can vary overtime. finance
aims to price assets based on their risk level and their expected rate of return .
Finance and personal finance .

Finance is the lifeblood of the business. The concept of finance theory involve
studying the various ways by which business and individual rise money , as well as
how money is allocated to projects while considering the risk factors associated
with them and its being rectified and risks are reduced. The concept of finance also
includes the study of money and other assets , managing and profiling projects
risks, control and management of assets , and the science of managing money . In
simple terms , finance also means provision and allocation of funds for a
particulars business module or project .

1
Meaning of finance

Finance describes the management, creation and study of money,

banking, credit, investments, assets and liabilities that make up financial
systems, as well as the study of those financial instruments. Some people prefer
to divide finance into three distinct categories: public finance, corporate
finance and personal finance. There is also the recently emerging area of social
finance. Additionally, the study of behavioural finance aims to learn about the
more "human" side of a science considered by most to be highly mathematical.

Ratio Analysis

Ratio analysis is the powerful technique which is widely used for

interpreting statements. This technique serves as a tool for assessing the financial
soundness of the business.

The idea of the ratio analysis was introduced by alexander wall for the
first time in 1919 . Ratio are quantitative relationship between two or more
variables taken from financial statement .

Ratio analysis is defined as, “ The systematic use of ratio interpret the
financial statement so that the strength and weakness of the firm as well its
historical performance and current financial condition can be dopamine . In the
financial statement we can find the many items are co-related with each other for
kale current assets and current liabilities, capital and long term dept. , gross profit
and net profit purchase and sales etc…

2
Objective of the study

 To assess the financial performance of the company in respect of

incomes
 To efficiency of the operation
 To forecast the profitability of the company
 To know the utilization of the financial performance of the
organization for last 5 years through ratio analysis

3
Scope of the study

 The study has been framed to the extent the interpretation of several
ratios and their interpretation from the financial data collected for five
years [2012,2013,2014,2015,2016]
 If was an attempt to understand the financial statement properly and to
know has the items of the financial statement are interlinked and bears
an influence on each other

4
Limitation of ratio analysis

Ratios are precious tolls in the hands of management but the utility lies in
the proper utilization of ratios. Should aware of the limitation of ratio analysis. The
following are the limiting factors which minimize the value of ratio analysis.

 Practical knowledeg
 Ratios are means
 Not accurancy of financial information
 Consistency in preparation of financial statements
 Detachment from financial statement

5
CHAPTER SCHEME

Chapter –I

It vividly exhibit the introduction and design of the study and history of Tata
communication industry and scope of study and objectives of study and Limitation
of study and research methodology & chapter scheme.

Chapter –II

It vividly exhibit the deal with review of literature and profile of

company.

Chapter –III

It vividly exhibit the data analysis and interpretation.

Chapter –IV

It vividly exhibit the finding and suggestion.

Chapter –V

It vividly exhibits the conclusion.

6
PROFILE OF THE COMPANY

Tata communications limited provides telecommunication services. The

company‘s segments include voice solutions (VS), and data and managed services
(DMS). The VS segment includes international and national long distance voice
services. The DMS segment includes corporate data transmission services, virtual
private network signalling and roaming services, television and other network and
managed services. It offers international and national voice and data transmission
services, selling and leasing of bandwidth on undersea cable systems, internet dial
up and broadband services, and other services comprising telepresence, managed
hosting, transponder lease, television up linking and other services. It serves two
customer segments services providers and enterprise customers. The company
classifies its operations into business segments, including global voice solutions
and global data and managed services.

Tata communications formerly called VSNL is global provider of

telecommunications solutions and services. It is part of the Tata group.

Beginning as a wholesale service provider focused on India, it has grown

to be one of the largest telecommunications service providers in the world. Tata
communications’ customers include over 2,000 service providers and enterprises in
240 countries, including many of world’s largest corporations.

Its telecommunications network spans the globe and includes more than
500,000 km of subsea fibre and more than 210,000 km of terrestrial fibre. The
company has invested $1.19 billion in its global subsea fibre network.

7
 Tata communications uses its network to deliver network services and
software-defined network platforms, such as Ethernet, SD-WAN, content delivery
network (CDN), Internet, Multiprotocol Label Switching (MPLS) and private line.
It has more then 400 points of presence (POP) globally with data centre and
colocation in 44 sites.

In 2016, Tata communications had revenue of $3.2 billion, with 77% of its
revenue being generated outside India. The company has over 8,000 employees
from 40 nationalities.

Tata communications is the official connectivity provider for formula 1. Since

2012, the company has provided web hosting and content delivery network
provider for formula 1.com.

Tata communications limited is headquartered in pune and Singapore and is

listed on the Bombay Stock Exchange and the National Stock of India. The
company itself also holds a stake in Tata communications Lanka limited in Sri
Lanka and Tata Teleservices Limited, one of the largest mobile service providers
in India.

The company is listed as one of AON Hewitt’s best employers in India for
2017.

8
HISTORY OF TATA COMMUNICATION INDUSTRY

HISTORY

Tata communication ltd(formerly videsh anchornigam ltd) is a part of the $29

billion Tata group , units the industry and market expertise of VSNL. A leading
provider of a new world of communication was 1000 and mid-size enterprises. The
Tata communications work with the fields of transmission, IP, converged voice,
mobility, managed network connectivity , hosted data center , communications
solutions and business transformation services to global and indian enterprises &
service providers as well as, broadband and content services to indian consuners.
The company has benchmarked in intelsat business service in the year 1992, a
dedicated satellite-based service that provides high speed, high quality data circuits
on a point-to-point basis through earth stations strategically located near the
customer’s premises and also has entered the era of mobile communications by
commissioning its own land earth station (LES) at Arvi near pune. During the
period 1993, introduced Inmarsat –c service, which permits transmission of
messages via small portable terminals and a video conferencing service (both
domestic and International) through studios located at the company’s international
gateways at Mumbai, New Delhi, Calcutta and Chennai. In 1994, the company had
a co-operation with British telecom, Uk and launched the concert packet service
(CPS) for Indian customers.

The company started providing internet access services in august of the month

year 1995, provided access to the internet in Mumbai, Chennai, New

Delhi,Calcutta, Bangalore and pune and also a dominant commercial provider of

9
access to the internet in India. The company sets up two standard “A” intelsat earth
stations, one at halisahar (Calcutta) and second at korattur (Chennai).

In 1996, the company has signed a construction and maintenance agreement for the
fibre optic link around the globe (FLAG). In 1996, the Tata Tele services (TTSL)
was established to spearhead the group foray into the telecom sector. Tata
communications has introduced the universal connect services jointly with TMI
(Tele media international) a wholly owned subsidiary of telecommunications
Italian. The company introduced managed data network services in January 1997,
and offers such services through the global alliance networks of six global partners
BT, cable & wireless, EOUANT, global one, IBM global services and Tele media
international and sets up its own facilities for a direct-to-home (DTH)television
service platform for Indian satellite television channels also has suspended new
dial-up connections. A memorandum of understanding was signed with electronic
corporation of Goa (ECG) for providing allied services in satellite communication
through an earth station at the verna software technology park, South Goa. The
company has joined several other Asian telecom companies in legally challenging
the right of

US telecom regulator, the federal communications commission (FCC) to

unilaterally determine the rates for telecom access to the united states.
VSNL and ICO global communications signed a final agreement for establishing a
ICO satellite access node (SAN) at chattarpur, New Delhi. During the year 1998,
the company signed a MOU for access to capacity in project oxygen, a high –
speed fibre optic cable network and also signed an MOU for participation in the
south Africa and Far –East (SAFE) undersea optical fibre system. The company
and Microsoft have together sets up a Microsoft download server in India

10
(http://www.vsnl.net.in/msdownload). The server, the first of such mirror sites in
India.

CHAPTER III

DATA ANALYSIS AND INTERPRETATION

Data analysis and interpretation

The financial statements are helpful to the executives to assess the

implication of their decisions, evaluate and review their, performance and
implement corrective action.

The financial statement is useful meaning full only when they are
analysed and adopted to analysis and interpret this statement as done in the case of
preparation of the statement.

The analysis and interpretation of financial statement are attempts to

determine the significant and meaning of financial statement data so that a forecast
can be made of the prospect for the future earnings.

Financial statements indicate certain absolute information about assets,

liabilities, revenues, expenses and profit or loss of enterprises. They are not readily
understandable to the external users of financial statement.

Interpretation in its widest sense includes many processes like

arrangement, analysis, establishing relationship making conclusion.

11
Current Ratio

Managerial efficiency is also calculated by establishing the relation in between

cost so are sales with the amount of capital invested in the business.

This ratio or acid test ratio is a liquidity ratio that measures the ability
of a company to pay its current liabilities when they come due with only quick
assets are current asset that can be converted to cash within 90 days or in the short
term. Cash equivalents short term investment or marketable securities, and current
accounts receivable are considered quick assets.

The quick ratio is often called the acid to metals for gold by the early miners. If the
passed the acid test it was pure gold. If metal failed the acid test by corroding from
the acid it was a base metal and of no value

Current assets

Current ratio ¿

Current liabilities

12
 Table 3.1.1

Current ratio

YEAR CURRENT ASSETS CURRENT PERCENTAGE

LIABILITIES (%)

2012-2013 1290.34 1467.52 0.8795

2013-2014 1490.12 1138.73 1.3085

2014-2015 2301.72 1347.18 1.7085

2015-2016 1963.67 1355.45 1.4487

2016-2017 2479.61 1475.73 1.6802

The above table shows that current ratio for year 2012-2013,2013-2014,2014-
2015,2015-2016,2016-2017. In 2014-2015 current assets is more than current
liability.

13
 Chart 3.1.2

Current ratio

1.8000
1.7085 1.6803
1.6000
1.4487
1.4000
1.3086

1.2000

1.0000
0.8793
0.8000

0.6000

0.4000

0.2000

0.0000
2012-2013 2013-2014 2014-2015 2015-2016 2016-2017

14
 Average analysis

Table 3.1.3

Year Percentage (%)

2012-2013 0.8795

2013-2014 1.3085

2014-2015 1.7085

2015-2016 1.4487

2016-2017 1.6802

Average 5.7195

The above table shows that current ratio average for five years and thus the
average percentage is 5.7195.

15
Absolute liquid ratio

Absolute liquid assets include cash, marketable securities.

This ratio obtained by dividing cash and bank and marketable securities by current
liabilities.

Absolute liquid ratio

Absolute liquid ratio¿

Liquid liabilities

16
 Table 3.2.1

Absolute liquid ratio

ABSOLUTE LIQUID
YEAR LIQUID LIABILITIES PERCENTAGE (%)
ASSETS

2012-2013 227.21 1467.52 0.1548

2013-2014 236.96 1138.73 0.2081

2014-2015 749.36 1347.18 0.5562

2015-2016 445.82 1355.45 0.3289

2016-2017 499.55 1475.73 0.3385

The above total shows that the absolute liquid ratio for the financial year
2012-2013,2013-2014,2014-2015,2015-2016,2016-2017. These ratios shows that it
is less than the standard norms of all the years from 2012-2013.

17
 Chart 3.2.2

Absolute liquid ratio

0.6000
0.5562

0.5000

0.4000

0.3289 0.3385

0.3000

0.2081
0.2000
0.1548

0.1000

0.0000
2012-2013 2013-2014 2014-2015 2015-2016 2016-2017

18
 Average Analysis

Table 3.2.3

Year Percentage (%)

2012-2013 0.1548

2013-2014 0.2080

2014-2015 0.5562

2015-2016 0.3289

2016-2017 0.3385

Average 1.3156

The above table shows that absolute liquid ratio average for five years
and thus the average percentage is 1.3156.

19
Proprietary ratio

This ratio compares the shareholders funds or owner’s funds and total
tangible assets. In other words this ratio expresses the relationship between the
proprietors’ funds and the total tangible assets.

This ratio shows the general soundness of the creditors of the company.
It is of particular interest to the creditors of the company as it helps them to
ascertain the shareholders funds in the total assets of the business. A high ratio
indicates safety to the creditors and a low ratio shows greater risk to the creditors.

A ratio below 5 is alarming for the creditors since they have to lose
heavily in the event of company liquidation as it. Indicates more of creditors funds
and lesser of shareholders funds in the total assets of the company

Shareholders funds

Proprietary ratio ¿

Total tangible assets

Table 3.3.1

20
 Proprietary ratio

SHARE HOLDERS
YEAR TOTAL TANGIBLE PERCENTAGE (%)
FUND

2012-2013 1273.96 1290.34 0.9873

2013-2014 1798.41 1490.12 1.2069

2014-2015 2368.75 2301.72 1.0291

2015-2016 2837.21 1963.67 1.4449

2016-2017 2817.84 2479.61 1.1364

The absolute liquid ratio the financial year 2012-2013,2013-2014.2014-

2015,2015-2016,2016-2017. Is very high as compare of the offer year. Thus it can
be concluded that the company has high not worth to meet the share holder funds
and it has normal proprietary ratio on all the period of study

21
 Chart 3.3.2

Proprietary ratio

1.6000

1.4449
1.4000

1.2069
1.2000 1.1364
1.0291
0.9873
1.0000

0.8000

0.6000

0.4000

0.2000

0.0000
2012-2013 2013-2014 2014-2015 2015-2016 2016-2017
PERCENTAGE (%)

22
 Average Analysis

Table 3.3.3

Year Percentage (%)

2012-2013 0.9873

2013-2014 1.2068

2014-2015 1.0291

2015-2016 1.4448

2016-2017 1.1364

Average 4.8953

The above table shows that proprietary ratio average for five years and
thus the average percentage is 4.8953

23
Gross profit ratio

The gross profit is important because it shows management and

investors how profitable the core business activities are without taking into
consideration the indirect costs. In other words it shows how efficiently company
can produce and sell is products. This gives investors a key insight into how
healthy the company actually is. For instance a company with a seeming healthy
net income on bottom line could actually be dying. The gross profit perceptions
could be negative, and the net income could be coming from other time operations.
The company could be losing money on every product produce but staying afloat
because of a onetime insurance pay out.

This ratio is also known as gross margin or trading margin ratio. Gross
profit ratio indicates the different between sales and direct costs. Gross profit ratio
explains the relationship between gross profit and net sales.

Gross profit

Gross profit ratio¿ x 100

Sales

24
 Table 3.4.1
Gross profit ratio
YEAR GROSS PROFIT SALES PERCENTAGE
(%)

2012-2013 1387.92 7514.55 18.4697

2013-2014 1552.62 8334.53 18.6287

2014-2015 1678.02 9101.05 18.4376

2015-2016 1774.35 9854.84 18.0048

2016-2017 8131.63 8175.31 9.9522

The above table shows that gross profit ratio for the year 2012-2013,2013-
2014,2014-2015,2015-2016,2016-2017. From the about table in the year of 2013-
2014 in percentage are increased at 18.6287.

25
 Chart 3.4.2

Gross profit ratio

20.0000
18.4697 18.6287 18.4376
18.0048
18.0000

16.0000

14.0000

12.0000
9.9522
10.0000

8.0000

6.0000

4.0000

2.0000

0.0000
2012-2013 2013-2014 2014-2015 2015-2016 2016-2017

PERCENTAGE (%)

26
 Average Analysis

Table 3.4.3

YEAR PERCENTAGE (%)

2012-2013 18.4697

2013-2014 18.6287

2014-2015 18.4376

2015-2016 18.0048

2016-2017 9.9522

Average 75.5312

The above table shows that gross profit ratio average for five years and thus
the average percentage is 75.5312

27
Operating profit ratio

If is the ratio profit made from operation sources to the sales usually shown
as a percentage. It shows the operational efficiency of the firm and is a measure of
management efficiency in routine operation of the firm.

Operating expenses include administration, selling and

distribution expenses. Finance expenses are generally excluded.

Operating profit ratio

Operating profit ratio ¿ x 100

Sales

28
 Table 3.5.1

Operating profit ratio

YEAR OPERATING SALES PERCENTAGE

PROFIT (%)

2012-2013 1546.36 7514.55 20.5782

2013-2014 1863.22 8334.53 22.3554

2014-2015 2040.61 9101.05 22.4216

2015-2016 2127.23 9854.84 21.5856

2016-2017 1693.24 8175.31 207116

The above table shows that the operating profit for the financial year 2012-
2013,2013-2014,2014-2015,2015-2016,2016-2017. There ratio shows that it is low
in the year 2012-2013(20.5782).

29
 Chart 3.5.2

Operating profit ratio

23.0000

22.5000 22.4216
22.3554

22.0000

21.5856
21.5000

21.0000
20.7116
20.5782
20.5000

20.0000

19.5000
2012-2013 2013-2014 2014-2015 2015-2016 2016-2017

PERCENTAGE (%)

30
 Average Analysis

Table 3.5.3

Year Percentage (%)

2012-2013 205782

2013-2014 22.3554

2014-2015 22.4216

2015-2016 21.5856

2016-2017 20.7116

Average 91.0831

The above table shows that operating profit ratio average for five years
and thus the average percentage is 91.0831

31
Net profit ratio

Profit margin is calculated with selling price taken as base times 100. It is
the percentage of selling price that is turned into profit whereas profit percentage
or “ markup” is the persentage of cost price that one gets as profit on top so
cost price. While selling something one should how what percentage of profit one
will get on a particular investment so companies calculate profit percentage to find
the ratio of profit of cost.

The margin is used mostly for internal comparison. It is difficult to accurately

compare the net profit for different entities. Individual businesses operating and
financing arrangement very so much that different entities are bound to have
different levels of expenditure so that comparison of one with another can have
little meaning. A low profit margin indicates a low margin of safety risk that a
decline in sales will erase profit and result in a net loss or a negative margin.

This ratio is called net profit to sales ratio. It is a measure of

management efficiency in operating the business successfully from the owner point
of view.

Net profit

Net profit ratio ¿ x 100

Sales

32
 Table 3.6.1

Net profit ratio

YEAR NET PROFIT SALES PERCENTAGE

(%)

2012-2013 838.12 7514.55 11.1532

2013-2014 935.15 833.53 11.2201

2014-2015 999.66 9101.05 0.1098

2015-2016 1029.58 9854.84 0.1044

2016-2017 132.24 8175.31 1.6175

The above table shows the net profit ratio for the year 2012-2013,2013-
2014,2014-2015,2015-2016,2016-2017. And there is a steady increase in the year.

33
 Chart 3.6.2

Net profit ratio

12.0000
11.1536 11.2202

10.0000

8.0000

6.0000

4.0000

2.0000 1.6176

0.1098 0.0104
0.0000
2012-2013 2013-2014 2014-2015 2015-2016 2016-2017

34
 Average Analysis

Table 3.6.3

Year Percentage (%)

2012-2013 11.1532

2013-2014 11.2201

2014-2015 0.1098

2015-2016 0.1044

2016-2017 1.6175

Average 22.911

The above table shows that net profit ratio average for five years and thus the
average percentage is 22.911

35
Cash position ratio

This ratio is also called “ liouidity ratio ” or “ super ouick ratio ” . this is a
variation of ouick ratio. This ratio is calculated when liouidity is high restricted of
terms of cash and cash eouivalents. This ratio measures liouidity in terms cash and
near cash items and short term current liabilities. Cash position ratio is calculated
with the help of the following formula.

Cash position ratio

Cash position ratio ¿

Current liability

36
 Table 3.7.1

Cash position ratio

YEAR CASH AND BANK CURRENT LIABILITIES PERCENTAGE (%)

2012-2013 227.21 1467.52 0.1548

2013-2014 236.96 1138.73 0.2081

2014-2015 749.36 1347.18 0.5562

2015-2016 445.82 1355.45 0.3289

2016-2017 499.55 1475.73 0.3385

The above table shows cash position ratio for the year 2012-2013,2013-
2014,2014-2015,2015-2016,2016-2017. In during the year 2014-2015(0.5562) the
cash position is very high.

Chart 3.7.2

37
 Cash position ratio

0.6000
0.5562

0.5000

0.4000

0.3289 0.3385

0.3000

0.2081
0.2000
0.1548

0.1000

0.0000
2012-2013 2013-2014 2014-2015 2015-2016 2016-2017

38
 Average Analysis

Table 3.7.3

Year Percentage (%)

2012-2013 0.1548

2013-2014 0.2080

2014-2015 0.5562

2015-2016 0.3289

2016-2017 0.3385

Average 1.3156

The above table shows cash position ratio average for five years and
thus the average percentage is 1.3156

39
Administration expenses ratio

The sales of administration expenses ratio measure how well the company is
keeping its administration costs control for its current sales levels.

Administration expenses

Administration expenses ratio ¿ x 100

Net sales

40
 Table 3.8.1

Administration expenses ratio

YEAR ADMINISTRATION NET SALES PERCENTAGE

EXPENSES (%)

2012-2013 549.80 7514.55 0.0773

2013-2014 617.47 8334.53 7.3164

2014-2015 678.36 9101.05 7.4536

2015-2016 744.77 9854.84 7.5574

2016-2017 681.39 8175.31 8.3347

The above table shows that the ratio for the financial year of 2012-2013,2013-
2014,2014-2015,2015-2016,2016-2017. This represents that ratio of 2016-2017 is
high.

Chart 3.8.2

41
 Cash position ratio

8.6000

8.4000 8.3347

8.2000

8.0000

7.8000

7.6000 7.5574
7.4536
7.4086
7.4000
7.3165

7.2000

7.0000

6.8000
2012-2013 2013-2014 2014-2015 2015-2016 2016-2017

PERCENTAGE (%)

42
 Average Analysis

Table 3.8.3

Year Percentage (%)

2012-2013 0.0773

2013-2014 7.3164

2014-2015 7.4536

2015-2016 7.5574

2016-2017 8.3347

Average 24.0716

The above table shows administration expenses average for five years and
thus the average percentage is 24.0716

Selling expenses ratio

43
 These ratio are used in accounting to measure performance in areas such as
sales expenses, and cost of goods, assets and liability ratios help management
make decisions by comparing a ratio from are priod to the next and making
appropriate changes based on the shown on the profit and loss statement with the
gross sales of the business that are also shows in the profit and loss account.

Selling expenses

Selling expenses ratio ¿ x 100

Net sales

44
 Table 3.9.1

Selling expenses

YEAR SELLING NET SALES PERCENTAGE

EXPENSES (%)

2012-2013 675.11 7514.55 8.9840

2013-2014 740.03 8334.53 8.8790

2014-2015 832.83 9101.05 9.1509

2015-2016 924.92 9854.54 9.3854

2016-2017 914.11 8175.31 11.1813

The above table shows that the ratio for the financial year of 2012-
2013,2013-2014,2014-2015,2015-2016,2016-2017. This ratio reveals that it is low
in the year 2013-2014(8.8790).

45
 Chart 3.9.2

Selling expenses

12.0000
11.1813

10.0000
9.3857
8.9840 9.1509
8.8791

8.0000

6.0000

4.0000

2.0000

0.0000
2012-2013 2013-2014 2014-2015 2015-2016 2016-2017

PERCENTAGE (%)

46
Debt eouity ratio
This ratio is called ascertained to determine long term solvency position of
a company debt eouity ratio is called “external internal ratio”.

Long term debts

Debt eouity ratio ¿

Shareholders funds

47
 Table 3.10.1

Debt equity ratio

YEAR LONG TERM SHAREHOLDERS PERCENTAGE

DEBT FUNDS (%)

2012-2013 885.13 1273.98 0.6847

2013-2014 1014.75 1798.41 0.5642

2014-2015 1193.39 2368.75 0.5038

2015-2016 1388.66 2837.21 0.4894

2016-2017 1597.17 2817.87 0.5668

The above table shows that the debt equity ratio for the financial year of
2012-2013, 2013-2014, 2014-2015,2015-2016,2016-2017. These ratio shows that
the debt equity ratio low in the year 2015-2016 and high in the year 2012-2013.

48
 Chart 3.10.2

Debt equity ratio

0.8000

0.6948
0.7000

0.6000 0.5668
0.5642

0.5038
0.5000 0.4894

0.4000

0.3000

0.2000

0.1000

0.0000
2012-2013 2013-2014 2014-2015 2015-2016 2016-2017

PERCENTAGE (%)

49
 Average Analysis

Table 3.10.3

Year Percentage (%)

2012-2013 0.6847

2013-2014 0.5642

2014-2015 0.5038

2015-2016 0.4894

2016-2017 0.5668

Average 2.3554

The above table shows that selling expenses average for five years
and thus the average percentage is 2.3554

50
 CHAPTER -IV

4.1 FINDING

The firms current ratio percentage decrease during the year 2012 was low
at 0.8795% but it increase to 1.7085% during 2014.

The firms absolute liouid ratio percentage decrease during the year 2013
low at 0.2080% but it increase to 0.5562% during 2014.

The proprietary ratio percentage decrease during the year 2012 low at
0.9873% but it increase to 1.4448% during 2015.

The gross profit ratio percentage increase during the year 2013 higher at
18.6287% but it decrease to 9.9522% during 2016.

The net profit ratio percentage increase during the year 2012 higher at
11.1532% but it decrease to 0.1044% during 2015.

The administration expense ratio decrease during the year 2012 low at
0.0773% but it increase to 8.3347% during 2016.

51
SUGGESTIONS

 The industry should take effective steps to improve the financial

liouidity position.
 Care should be taken to control its liability.
 The industry should improve its operating efficiency to earn more
profitability.

52
CONCLUSION

A study was conducted to find out the financial performance using the ratio
analysis of “TATA COMMUNICATION INDUSTRY”. The financial statements
for previous years of the industry are acquired from the industry the data was
collected and analysed using the percentage method. Based on the interpretation,
the finding and suggestion have been recommended. Implementation of the
suggested ideas by the management leads to improvement in the performance of
the industry.

53