“STUDY OF EXPENSIS IN DIFFERENT BRANCHES

OF HINDUSTAN TIME AT WESTERN UP REGION”

A PROJECT REPORT
Submitted in the fulfillment of the Requirement of the
Award of the Degree of
Master of Business Administration
(YEAR 2011-2012)

Supervised by: Submitted by:

Mrs. Soniya PRACHI JAIN
Roll. No. 7795
MBA IInd SEM

BANASTHALI VIDYAPITH, WISDOM

JAIPUR CAMPUS (RAJASTHAN) 302001

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 ACKNOWLEDGEMENT

I would like to again manager of Ms. Swati Agarwal who guided me all along during the
course of my project. There are many others at “Hindustan Times” office , who have
shared with me their experience and knowledge and I owe our heartfelt gratitude to each
one of them.

I am extremely thankful to my institution to provide me such a great opportunity. It has

been a great learning experience on my technical as well as personal aspects. My sincere
thanks to Faculty Mrs. Soniya for guidance during this project.

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Page 2 of 73
 CHAPTER 1

AN
INTRODUCTION

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INTRODUCTION TO FINANCE

The economic development of any country depends upon the Existence of a well
organized financial system. It is the financial system which supplies the necessary
financial inputs for the Production of goods and services which in turn promote the well
being and standard of living of the people of a country.

Finance is the life blood of business without finance, the heart and brain of business
organization cannot function implying there by its natural death. Right from conceiving
the idea of birth of a business to its liquidation, finance is required

Inputs are made available only with finance. Even managerial ability can be had with
only finance. So, finance is the pivot around which the whole business operations
cluster.

Therefore, there is an imperative need to efficiently manage the finances of a company.

Actually, sometimes, it is not the inadequate finance that is the cause of failure of a
business but the mismanagement of sources which is ultimately responsible for it.

Proper finance is the real key to the success of any business enterprise. Without proper
finance no business can survive nor can it be expanded and modernized.

In older times financial management was used periodically and its importance was
limited to the procurement of funds but in modern times finance is a continues
administrative function. Its Relation is with the procurement of capital, sources of funds,
capital budgeting decisions etc

1 Finance enhances for business promotion

2 Useful in decision making.

3 It is a key determinant of business success.

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 4 Financial information or results is useful in measurement of

performance.

5 It enables for basis of planning, coordination and control.

6 Useful to shareholders and investors.

Financial Management is an integral part of Business Management. Finance is one of the

key functions in an organisation. The other key functions in an organisation are:

Production

Human Resources

Marketing

Each of the above function has got sub-divisions – for example Production has
maintenance, Administration has purchases etc.

Finance deals with financial resources. Financial management as a corollary would deal
with management of financial resources and related areas.

Some of the key finance functions are:

Financial planning and estimation of finance required for the organisation

Mobilisation of financial resources required as above

Ensuring that the funds are available in adequate quantity at appropriate time and at an
affordable cost

Management of cash in the organisation through cash flow statement

Management of investment outside the business enterprise in other organisations

above functions with some examples.

Financial planning and estimation of finance required for the organisation

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Any activity in a business enterprise requires planning for proper execution in time.
Finance is required for any activity at least in the beginning and hence financial planning
is the prime function of “Finance”. This involves detailed study of any activity from
understanding the total funds requirement for that activity, when the funds will be
required and how much funds will be required at different stages. For a new enterprise the
entire resources have to come from outside (externally); for an existing enterprise, a part
of the resources at least will be available from the profits made in the past and retained in
business after declaring dividend.

Example No. 1:

We require Rs. 200 lacs for an activity. Let us see how it affects an existing enterprise.
Let us assume the profits available to be Rs. 60 lacs. Then we require further resources of
Rs. 140 lacs only. This is the difference between an existing enterprise and a new one.
Financial planning will take this into account.

Mobilisation of financial resources:

Adequacy (availability in adequate quantity)

Timely (availability in time) and

At an affordable cost

Adequate supply in time etc.

This has been explained this in the above point. For reinforcement the student’s attention
is drawn to one of the objectives of financial management at least in the short run, the
objective of maximising profits of the organisation. The profits so maximised in turn
enhance the Earning Per Share (EPS – for formula please refer to Chapter no. 9).

Management of cash in the organisation

This involves the following steps:

Ascertaining the average cash requirement by looking at the past figures and for a
new enterprise, estimating this figure.

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 Preparing the cash flow statement for a given period, taking all the cash inflows
and cash outflows during the period to determine whether there is a surplus or
deficit at the end of the period

Arranging for funds from outside especially through a bank with whom the
enterprise has loan facilities in case of deficit in the cash flow statement; if on the
contrary, the cash flow statement reveals a surplus, dealing with this surplus in a
suitable manner (For further details, please refer to chapter no. 7 on “working
capital management”)

Management of investment outside the organisation

Over a period of time the enterprise reinvests a part of the profits for future growth of the
organisation in business. The Finance manager can invest such funds outside the business
in other enterprises also provided the parent enterprise does not require them
immediately. Short-term surplus as revealed by the Cash flow statement is also invested
for short duration. Thus investment outside one’s own business becomes the
responsibility of the Finance Manager

Management of risk in foreign exchange etc.

A business enterprise may require imports and do exports also. Whenever this is done the
invoice is in foreign currency. In imports the business enterprise requires foreign
exchange while in exports it gets foreign exchange. There is a risk involved while doing
imports or exports. The risk is that the exchange rate of the foreign currency in terms of
Indian Rupees can keep changing. We will explain this through an example.

Short-term and long-term objectives of Financial Management

Short-term objective

The short-term objective of Financial Management is to procure financial resources at an

affordable cost thereby increasing the return to the shareholders in the form of Earnings
Per Share (EPS). EPS comprises two elements namely Dividend per share (DPS) and
Retained Earnings per share (REPS or Reserves per share). This objective is often times
referred to as “profit maximisation”. This is known as the short-term objective as it is
done on a continuous, year-to-year basis. One or more of the following measures can
achieve this:

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Monitoring of costs on a continuous basis through budgets

Suitable cost reduction techniques wherever the costs are high

Minimisation of cost of borrowed capital from outside through financial discipline

Proper mix of equity and debt (known as financial leverage – for further details please
refer to Chapter no. 5 – Operating and financial leverages

Control over liquidity available in the organisation so as to minimise the cost of carrying
too much cashi etc.

Long-term objective

The long-term objective of financial management is to increase the wealth of the

shareholders. The term “wealth” refers to various business assets of the enterprise that are
free of debt. This means that this wealth belongs to the equity shareholders. It is often
reflected in the “book value” of the share as reflected in the balance sheet Financial
system in India

In order to understand financial management better, we need to understand the “Financial

System” that exists in India. Any country needs a system to regulate, supervise, monitor
and control the players, intermediaries, the investors etc. who take part in the financial
markets in the system. Further an efficient system alone can ensure that the national
objective on “Economy” of the country is met by aligning the developments in the system
with the national priorities. An example of the national priority deciding the development
in the financial markets is – “infrastructure development and need for longer duration
financial resources” and development of “deep discounted bonds” to meet this
requirement. (For further details please refer to Chapter no. 4 – Financial sources)

WHAT IS COST ANALYSIS?

Cost analysis (also called economic evaluation, cost allocation, efficiency

assessment, cost-benefit analysis, or cost-effectiveness analysis by different authors) is
currently a somewhat controversial set of methods in program evaluation. One reason for
the controversy is that these terms cover a wide range of methods, but are often used
interchangeably.

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 At the most basic level, cost allocation is simply part of good program budgeting
and accounting practices, which allow managers to determine the true cost of providing a
given unit of service (Kettner, Moroney, & Martin, 1990). At the most ambitious level,
well-publicized cost-benefit studies of early intervention programs have claimed to show
substantial long-term social gains for participants and cost savings for the public
(Berreuta-Clement, Schweinhart, Barnett, et al., 1984). Because these studies have been
widely cited and credited with convincing legislators to increase their support for early
childhood programs, some practitioners advocate making more use of cost-benefit
analysis in evaluating social programs (Barnett, 1988, 1993). Others have cautioned that
good cost-benefit or cost-effectiveness studies are complex, require very sophisticated
technical skills and training in methodology and in principles of economics, and should
not be undertaken lightly (White, 1988). Whatever position you take in this controversy,
it is a good idea for program evaluators to have some understanding of the concepts
involved, because the cost and effort involved in producing change is a concern in most
impact evaluations (Rossi & Freeman, 1993).

COST ANALYSIS IS OF THREE IN EVALUATION:

1. Cost Allocation
2. Cost - Effectiveness analysis
3. Cost - Benefit analysis

represent a continuum of types of cost analysis which can have a place in

program evaluation. They range from fairly simple program-level methods to highly
technical and specialized methods. However, all have specialized and technical
aspects. If you are not already familiar with these methods and the language used, you
should plan to work with a consultant or read some more in-depth texts (see some
suggested references at the end of this discussion) before deciding to attempt them.

COST ALLOCATION:

Cost allocation is a simpler concept than either cost-benefit analysis or cost-

effectiveness analysis. At the program or agency level, it basically means setting up
budgeting and accounting systems in a way that allows program managers to determine a
unit cost or cost per unit of service. This information is primarily a management tool.

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However, if the units measured are also outcomes of interest to evaluators, cost allocation
provides some of the basic information needed to conduct more ambitious cost analyses
such as cost-benefit analysis or cost-effectiveness analysis. For example, for evaluation
purposes, you might want to know the average cost per child of providing an after-school
tutoring program, including the costs of staff salaries, snacks, and other overhead costs.

Besides budget information, being able to determine unit costs means that you
need to be collecting the right kind of information about clients and outcomes. In many
agencies, the information recorded in service records is based on reporting requirements,
which are not always in a form that is useful for evaluation.

If staff in a prenatal clinic simply reports the number of clients served by gender,
for example, you might know only that 157 females were served in March. For an
evaluation, however, you might want to be able to break down that number in different
ways. For example, do young first-time mothers usually require more visits than older
women? Do single mothers or women with several children miss more appointments? Is
transportation to appointments more of a problem for women who live in rural areas? Are
any client characteristics commonly related to important outcomes such as birth weight of
the baby? Deciding how to collect enough client and service data to give useful
information, without overburdening staff with unnecessary paperwork requirements,
requires a lot of planning. Larger agencies often hire experts to design data systems,
which are called MIS or management-and-information-systems.

If you are working for an existing agency, your ability to separate out unit costs
for services or outcomes may depend on the systems that are already in place for
budgeting, accounting, and collecting service data. However, if you are in a position to
influence these functions, or need to supplement an existing system, there are a number of
texts that discuss the pros and cons of different ways of budgeting, accounting, and
designing MIS or management-and-information-systems (see Kettner, Moroney &
Martin, 1990).

COST - EFFECTIVENESS ANALYSIS :

Most often, cost-effectiveness and cost-benefit studies are conducted at a level

that involves more than just a local program (such as an individual State Strengthening

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project). Sometimes they also involve following up over a long period of time, to look at
the long-term impact of interventions. They are often used by policy analysts and
legislators to make broad policy decisions, so they might look at a large federal program,
or compare several smaller pilot programs that take different approaches to solving the
same social problem. People often use the terms interchangeably, but there are important
differences between them.

Cost - Effectiveness analysis assumes that a certain benefit or outcome is desired,

and that there are several alternative ways to achieve it. The basic question asked is,
"Which of these alternatives is the cheapest or most efficient way to get this benefit?" By
definition, cost-effectiveness analysis is comparative, while cost-benefit analysis usually
considers only one program at a time. Another important difference is that while cost-
benefit analysis always compares the monetary costs and benefits of a program, cost-
effectiveness studies often compare programs on the basis of some other common scale
for measuring outcomes (eg., number of students who graduate from high school, infant
mortality rate, test scores that meet a certain level, reports of child abuse). They address
whether the unit cost is greater for one program or approach than another, which is often
much easier to do, and more informative, than assigning a dollar value to the outcome
(White, 1988).

COST - BENEFIT ANALYSIS :

The basic questions asked in a cost-benefit analysis are, "Do the economic
benefits of providing this service outweigh the economic costs" and "Is it worth doing at
all"? One important tool of cost-benefit analysis is the benefit-to-costs ratio, which is the
total monetary cost of the benefits or outcomes divided by the total monetary costs of
obtaining them. Another tool for comparison in cost-benefit analysis is the net rate of
return, which is basically total costs minus the total value of benefits.

The idea behind cost-benefit analysis is simple: if all inputs and outcomes of a
proposed alternative can be reduced to a common unit of impact (namely dollars), they
can be aggregated and compared. If people would be willing to pay dollars to have
something, presumably it is a benefit; if they would pay to avoid it, it is a cost. In
practice, however, assigning monetary values to inputs and outcomes in social programs

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is rarely so simple, and it is not always appropriate to do so (Weimer & Vining, 1992;
Thompson, 1982; Zeckhauser, 1975).

"Suppose the drop-out rate in an inner-city high school is 50%. Prevention Program
A enrolls 20 students, costs $20,000, and 15 of the 20 students (75%) graduate. Thus
Program A resulted in 5 additional graduates at a cost of $20,000, or one additional
graduate for every $4,000. Prevention Program B enrolls 20 students, costs $15,000, and
12 of the 20 students (60%) graduate. Thus Program B resulted in 2 additional graduates
at a cost of $15,000, or one additional graduate for every $7,500 spent. Although Program
B is cheaper ($15,000 compared to $20,000), Program A is more COST-EFFECTIVE
($4,000/each additional graduate, compared to $7,500/additional graduate). A COST-
BENEFIT ANALYSIS in this situation, instead of comparing unit costs, would require
estimating the dollar value of high school graduation

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 THE HINDUSTAN TIMES LIMITED

(CORPORATE PROFILE)
India's foremost media conglomerate is home to the leading newspapers in the country - Hindustan Times (the

flagship English daily) and Hindustan (Hindi newspaper). And it has a significant online presence with

HindustanTimes.com.

The Hindustan Times Ltd. plans to consolidate itself as a vibrant and modern media powerhouse through strategic

partnerships, ever-increasing scope of operations and a consumer focussed approach.

HINDUSTAN TIMES

The flagship publication of the Group has editions from Delhi, Lucknow, Patna and Kolkata, thus, dominating the

Northern, Eastern and Central regions of the country. It is printed out of eleven centres including Bhopal,

Chandigarh, Delhi, Jaipur, Nagpur, Kolkata, Lucknow, Bhagalpur, Patna, Ranchi and Raipur, reaching closer to the

consumers.

Its New Delhi edition continues to be the single largest English daily edition in the country with a circulation of over

9.2 lakhs, while maintaining its leadership status in Delhi as the largest circulated English daily at 5.5 lakhs.

Hindustan Times believes in continuous improvement and providing greater value to its readers and advertisers. It

has set many a standard for its competitors and will continue to do so in the years to come. It is the first smart-age

newspaper in India to evolve into a new international size, sleeker and smarter, which ensures enhanced ease of

reading and convenient handling.

In its endeavor to provide its readers with greater value, it has revamped its existing supplements and added new

ones to its portfolio, offering a daily supplement catering to specific target audiences. Supplements like HT Estates

(on real estate and interiors) are the first of their kind in their respective categories. The enlarged operations and

enhanced look have also paid off with a substantial increase in circulation across the country.

In a major incentive for the advertisers as well as the readers, Hindustan Times has entered into strategic alliances

with The Indian Express, Business Standard, Mid-Day and Deccan Chronicle. These alliances, along with its strong

presence in North India, make it one of the most of the most formidable media players.

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HINDUSTAN TIMES.COM

HindustanTimes.com, a news led media portal is today one of the most popular port of call for news and

infotainment content seekers on the Web. Besides carrying stories from the newspaper, the site has exclusive and in-

depth coverage by its independent editorial staff. Its exclusive properties include HTTabloid.com, which is Asia's

first tabloid on the Web; and economy HTCricket.com, a popular destination for cricketing bytes. The site also

provides sections written by popular columnists, along with in-depth web exclusives on politics, business, new,

entertainment, fashion and lifestyle.

In another major achievement, HindustanTimes.com is the only Indian media site featured amongst the top 10

international newspaper sites by Forbes for the third time running, ranking above the likes of International Herald

Tribune.

Hindustan Times
Hindustan Times

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The 28 March 2010 front page of
Hindustan Times

Type Daily newspaperm.

Format Broadsheet
Owner HT Media Ltd
Editor-in-chief Mr Sanjay Narayan

Founded 1924

Political alignment Centrist[1]

Language English

18-20 Kasturba Gandhi Marg, New

Headquarters Delhi 110001
India

Circulation 1,143,000 Daily

OCLC number 231696742

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 Official website Hindustantimes.com

Hindustan Times House, New Delhi

Hindustan Times (HT) is an Indian English-language daily newspaper founded in 1924 with
roots in the Indian independence movement of the period ("Hindustan" being a historical name for India).[2]

It is the flagship publication of HT Media Ltd. Hindustan Times is one of the largest newspapers in India, by

circulation. According to the Audit Bureau of Circulations, it has a circulation of 1.4 million copies as of 2010. The

Indian Readership Survey (IRS) 2011 revealed that HT has a readership of (37.37 lakhs), placing it as the second

most widely read English newspaper in India after The Times of India.[3] It has a wide reach in northern India, with

simultaneous editions from New Delhi, Mumbai, Kolkata, Lucknow, Patna, Ranchi, Bhopal and Chandigarh. The

print location of Jaipur was discontinued from June 2006. HT launched a youth daily, HT Next, in 2004. The

Mumbai edition was launched on 14 July 2005 and the Kolkata edition was launched on early 2000.

Other sister publications of Hindustan Times are Mint (English business daily), Hindustan (Hindi Daily), Nandan

(monthly children's magazine) and Kadambani (monthly literary magazine). The media group owns a radio channel,

Fever, and organises an annual Luxury Conference which has featured speakers like designer Diane von

Fürstenberg, shoemaker Christian Louboutin, Gucci CEO Robert Polet and Cartier MD Patrick Normand. Hindustan

Times is owned by the KK Birla branch of the Birla family.

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hindustan
'Hindustan', covers news across the entire spectrum of international, national and local news relating to politics,

business, entertainment, sports and other general interests. The first edition of 'Hindustan' was published on April

12, 1936 from Delhi and the reach of our newspaper now extends to six regions, namely, Uttar Pradesh,

Uttarakhand, Bihar, Jharkhand, Mohali and Delhi NCR. In the recently declared readership results (IRS Q4 2010),

Hindustan has surged ahead to become the second largest read newspaper in India.

In the past nine months, Hindustan has added 58 lakh readers to its readership base. A bulk of this growth has come

from Uttar Pradesh where Hindustan has added 41 lakh readers in this nine month period. Hindustan now has a 30%

share of readership in Uttar Pradesh, with a total readership of 1.28 crore in UP. Hindustan continues to maintain its

dominant position in Bihar and Jharkhand with 83% and 73% share of total readers.

The gains across all markets clearly demonstrate the growing strength of Hindustan daily. With many of the newer

editions yet to reflect in IRS, the growth momentum is likely to be sustained.

Over the past three years, we have made significant investments in Uttar Pradesh and have opened five new printing

locations in Agra, Meerut, Allahabad, Kanpur and Bareilly to add to our existing printing facilities at Varanasi (on a

franchisee basis) and Lucknow.

Hindustan has made an entry into Uttarakhand with a printing location in Dehradun, in May 2008. This print

location will cover key cities in Uttarakhand.

LiveHindustan.com

Visit: http://www.livehindustan.com/

LiveHindustan.com is the recently launched Hindi News website, which promises far more than what Language

sites are typically credited for. Its comprehensiveness and exclusive online content by the online editorial team adds

to the huge print repository of stories carried in the parent brand Hindustan, and is updated round the clock with the

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latest in breaking news action. The legacy values of the Hindi print flagship brand - Hindustan - can be seen upheld

in the online avatar bringing to the table its credibility; authenticity and unbiased content, to provide its dedicated

reader base a Best in Class Hindi News & Content site.

On the Content front, apart from News, LiveHindustan.com extends the Brand Promise of Empowerment - 'Tayyari'

and has interactive elements to increase the interaction with the brand at more direct levels.

Comprehensive Multimedia Content across sections, ball by ball Cricket Coverage, minute by minute Business

updates and analysis, and Special in-depth exclusive Features on content across sections, are some of the other

features which distinguish this site from other run-of-the-mill Hindi News sites.

Nandan

Nandan, HT Media's monthly Children Magazine is more than 47 years old brand. The magazine was started in

November 1964 in the memory of Pandit Jawahar Lal Nehru, with its first issue being dedicated to the late Prime

Minister. Over the years it has developed a strong bond with its readers and is extremely popular among children

and their families in India and abroad. Taking an edge over other children magazines, Nandan provides a mix of

traditional and modern stories, poems, interactive columns, interesting facts and many educative columns, leading to

wholesome development of our children. It keeps our children abreast with our cultural ethos, exposes them to latest

happenings in and around world and engages them into numerous fun activities, shaping their mind and behavior in

a positive way.

Kadambini

Kadambini is a monthly magazine for the evolved, discerning reader who is yearns for something 'intelligent' to

read. A socio- cultural magazine that was started in 1960. In the 51st year of it's reigning over its readers heart , a

non political magazine that has carved a niche for itself amongst the other hindi magazines Notable & award

winning authors like Ajenya, Mahadevi Verma & Kunwar Narayan with their writings have made significant

contributions to this magazine; the only magazine of its kind with a unique blend of literature, culture, science and

life, it sees things in a different perspective, and goes behind the scenes instead of looking at things superficially. A

magazine for thought leaders giving them a fresh perspective on a variety of topics- literature, art, culture,

health,technology, fashion, travel, beauty etc.

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History
Hindustan Times was founded in 1924 by Master Sunder Singh Lyallpuri, founder-father of the Akali movement and

the Shiromani Akali Dal in Punjab.[4] S Mangal Singh Gill (Tesildar) and S. Chanchal Singh (Jandiala, Jalandhar)

were made in charge of the newspaper. Pandit Madan Mohan Malaviya and Master Tara Singh were among the

members of the Managing Committee. The Managing Chairman and Chief Patron was Master Sunder Singh

Lyallpuri.

K. M. Panikkar was its first editor with Devdas Gandhi (son of Mahatma Gandhi) on the editor's panel. The opening

ceremony was performed by Mahatma Gandhi on 26 September 1924. The first issue was published from Naya

Bazar, Delhi (now Swami Sharda Nand Marg). It contained writings and articles from C. F. Andrews, St. Nihal

Singh, Maulana Mohammad Ali, C. R. Reddy (Dr. Cattamanchi Ramalinga Reddy), T. L. Vaswani, Ruchi Ram

Sahni, Bernard Haton, Harinder Nath Chattopadhyaya, Dr Saifuddin Kichlu and Rubi Waston etc.

"Sadar Panikkar launched the Hindustan Times as a serious nationalist newspaper. As an Oxonian, historian, and

litterateur, Panikkar must have hoped to make his paper eventually more than an Akali sheet. He became the editor

and funds flowed freely from activist Akali patrons. He exerted himself strenuously, but the paper made very little

headway. In two years Panikkar could not take the print order any higher than 3,000. By then the Akali movement

appeared to lose steam and funds dried up. The paper was saved from an untimely demise when Pandit Madan

Mohan Malaviya stepped in to realise his vision of a newspaper in Delhi." - TJS George, Lessons in Journalism,

2007, Viva Books, New Delhi.

Malaviya raised Rs. 50,000 rupees to acquire the Hindustan Times along with the help of nationalist leaders Lajpat

Rai and M. R. Jayakar and industrialist G. D. Birla, who paid most of the cash. Birla took full control of the paper in

1933. The paper continues to be owned by the Birla family.

It has its roots in the Indian independence movement of the first half of the twentieth century and even faced the

noted "Hindustan Times Contempt Case (August–November, 1941)" at Allahabad High Court.[5] It was edited at

times by many important people in India, including Devdas Gandhi and Khushwant Singh. Sanjoy Narayan, has

been appointed the editor in chief of the paper and was due to take over in August 2008.[6] Recently[when?] the

editorial page has seen a major makeover and has been named "comment" to bring in more flexibility and some-

what less seriousness to the page.

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HT Mumbai edition
HT Mumbai has an eight-page daily lifestyle supplement (in tabloid format) called HT Cafe. It has its education

supplement called "HT Education" on Wednesdays. The paper also comes with a magazine on Sundays called

Brunch. The Mumbai edition is managed by Mohit Ahuja, an alumnus of NMIMS, Bombay. The resident editor in

Mumbai is Soumya Bhattacharya.

Ownership
The Delhi-based English daily Hindustan Times is part of the KK Birla group and managed by Shobhana Bhartia,

daughter of the industrialist KK Birla and granddaughter of GD Birla. It is owned by HT Media Ltd. The KK Birla

group owns a 69 per cent stake in HT Media, currently valued at Rs 834 crore. When Shobhana Bhartia joined

Hindustan Times in 1986, she was the first woman chief executive of a national newspaper. Shobhana has been

nominated as a Rajya Sabha MP from Congress Party.

Along with Hindustan Times, HT Media owns Desimartini, Fever 104 FM, and Mint (newspaper).]

Supplements
[7]

Brunch: An exclusive lifestyle magazine, every Sunday. The readers of HT wake up to Brunch every Sunday
morning, which is one of best-loved offerings from its stable. In a magazine format and clearly about ‘the good life’,

it covers stories around food, fashion, shopping, travel, health & wellness, books & movie reviews, celebrity talk,

lifestyle etc. One of the biggest draws of Brunch is the bouquet of columns by prominent journalists like Vir

Sanghvi (food & travel), Sanjoy Narayan (music) and Rajiv Makhni (technology). This universally appealing brand

has the core target group vested in upwardly mobile young families, looking for enhancing their lifestyle quotient.

HT City and HT Cafe: The entertainment & lifestyle supplement, every day. The Hindustan Times reader
wakes up to a bundle of fun, frolic, entertainment and masala everyday called HT City (in Delhi) and HT Café (in

Mumbai). One of the strongest drivers of readership, the daily entertainment supplement enjoys almost universal

salience and readership. The buzzy daily supplement has redefined lifestyle and entertainment space in newspapers,

packing a punch with daily dose of Bollywood, Hollywood, Fashion, Relationship, City and Campus. The

supplement offers an array of daily sections catering to different tastes - health & wellness, gadgets, travel, motoring

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and food. One of the biggest draws of the supplement is the Weekend Planner on Fridays that the young people of

Delhi & Mumbai refer to as a guide to living it up in the city.

HT Education: Education Supplement, every Wednesday (earlier known as HT Horizons). HT Education

offers the much needed guidance and mentorship to the students, which really helps them in choosing the best in

education leading to a great career. HT Education is a supplement dedicated to serving the needs of not only student

community from 10th to post graduates, but also the parents who are concerned about their child’s future. The

supplement is a source of comprehensive info around – career options, admission and scholarship information,

college profiles, guidance and expert counseling. It’s a one-stop guide to the students to prepare for their most

exciting phase in life.

HT Estates : Real Estate supplement, every Saturday. HT Estates as a supplement partners and corroborates
the readers with information that helps them buy or sell their properties. This supplement comes with the newspaper

every Saturday. The supplement offers countless options on property buying and selling. Along with that the

supplement also enlightens both the buyers and sellers on legal aspects of realty transactions. Specifically for buyers

the supplement offers array of information on realty trends, loan rates, etc.

Shine Jobs : Career supplement, every Tuesday. Shine Jobs, with its unique relationship with Shine.com, is the
only print career supplement which offers both online and print recruitment under one umbrella and one brand. This

gives candidates and employers the opportunity to effectively reach each other across both platforms. Shine Jobs

was re-launched with a brand new look and promise of hundreds of jobs for its readers. It now carries numerous jobs

from top companies in the country, along with the best jobs available on Shine.com, across managerial levels,

industries and cities. It also offers valuable information on overall career development, interview tips, HR trends, hot

hiring sectors and many more useful career-related topics. Shine Jobs is a must-read for all those on the look-out for

the next best career opportunity.

HT Live : A ‘peek around the corner’ is what Live offers to its readers - a supplement that caters to the readers’
quest for local news. This supplement has dedicated 8 editions for 8 zones in Delhi and appears once a week in

every zone. The supplement highlights the hits and misses on infrastructural development and lifestyle centered

around neighbourhoods. It offers a bag full of interesting local news and local advertising which helps readers get

immediate assistance on their requirements.

Columnists

Page 21 of 73
Vir Sanghvi: Vir Sanghvi is an editorial advisor for Hindustan Times. He writes a column 'Rude Food' for
'Brunch', a weekly magazine.

Karan Thapar: Currently the president of Infotainment Television and one of India's noted television
commentators and interviewers, Karan Thapar writes the weekly column "Sunday Sentiments".

Manas Chakravarty: Capital market analyst for Mint. Writes weekly column "Loose Canon" on Sundays'.

Poonam Saxena: She is the editor of Brunch, the Hindustan Times Sunday magazine. She does a weekly TV
review column, "Small Screen".

Indrajit Hazra: A novelist and a senior editor at Hindustan Times, Hazra writes the weekly column "Red
Herring".

Sonal Kalra: An author and editor of HT City, the daily entertainment and lifestyle supplement of Hindustan
Times, Writes the weekly column "A Calmer You".

Khushwant Singh: An editorial writer whose column "With Malice towards One and All" appears in the
Saturday edition.

Barkha Dutt: Journalist and NDTV Group editor. Writes a fortnightly column.

Samar Halarnkar: Editor-at-large, writes on a variety of issues and also runs a food blog on the Hindustan
Times website.

Page 22 of 73
swot analysis of Hindustan times

Page 23 of 73
HMVL On Forbes List

5th September, 2011 - New Delhi, India

Hindustan Media Ventures Limited (HMVL) has been named by Forbes as one of the
Best Under A Billion companies in the Asia-Pacific region. It is one of the 35 Indian
companies that have found a place on Forbes Asia's list of 200. HMVL, publisher of
Hindustan, one of India's leading Hindi language dailies, is the only Indian media
company to make the list.

Page 24 of 73
To qualify for the list a company must have annual revenue between $5 million and $1
billion and be publicly traded for at least a year. HMVL has performed exceedingly well
this year. The company's primary publication, Hindustan, strongly consolidated its
leadership position in Delhi-NCR, Bihar, Jharkhand, UP and Uttarakhand. HMVL's IPO,
floated in April of 2010, was very well received by investors. Mr. Amit Chopra, CEO of
HMVL, said "being included on this list is a testament to our commitment towards our
readers and customers. This honor has bolstered our objective of maintaining the highest
standards of journalistic integrity and fast growing into the preferred daily across the
Hindi-belt."

Forbes Asia picked companies that best managed through the economic volatility that
began in 2008. On average the companies on the list have a 13% debt-to-equity ratio and
67 companies on the list carry no debt at all. India is the number two most represented
nation on the list. China and Hong Kong come in first with 65 companies. 2 companies
from Pakistan and 4 from Sri Lanka also find their way on the list.

Hindustan Jobs launched

On May 8, the Hindi belt saw the launch of Hindustan Jobs. This unique offering is an
employment weekly newspaper from Hindustan Media Ventures Limited, the publisher of
Hindustan, India's second largest daily. The weekly newspaper has broken new ground by
incorporating elements of navigation and selection, a first in the category. Jobs have been
clustered according to educational qualifications.

The employment weekly from Hindustan would carry government as well as private jobs
and would be circulated across the states of Bihar, Jharkhand, UP, UK and Delhi.

Hindustan Jobs is the latest in the series of innovations launched in the last few months by
the publishing house. Successes like the award winning English teaching product - Jaano
English, personal finance supplement - Hindustan Money and the women's magazine -
Anokhi, have been welcomed by readers.

The launch of Hindustan Jobs follows the re-launch of Hindustan on April 12 earlier this
year. The brand had repositioned itself with refreshed content, design and a revamped
product portfolio. Currently, the print job information market is dominated by the
government-run Employment News and carries only government jobs. The market also
has a slew of private players which cater to extremely localized markets.

It addresses a need gap in the market and is a well researched and innovative product
offering. The product's unique proposition of providing a one stop, fast, relevant and
reliable source of job related information is sure to make it a delight for the consumer.

The search and need for jobs is a big life concern in the Hindi belt. Hindustan Jobs
reinforces Hindustan's core proposition - Tarakki ko Chahiye Naya Nazariya by taking
employment opportunities to Hindi markets in a new and innovative format.

Editor-in Chief, Shashi Shekhar believes that "Hindustan Jobs is a great innovation in
Hindi Journalism. The Hindi belt has a large population of educated youth. Jobs are the

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need of the hour for them. It is the duty of journalists to serve the demand of society. It is
an opportunity to positively influence the lives of people who are seeking opportunities
for progress."

Hindustan Jobs is available in a compact format and priced at Rs.7.

Hindustan 2nd largest read daily of the country

In the recently declared readership results (IRS Q4 2010), Hindustan has surged ahead to
become the second largest read newspaper in India.

In the past nine months, Hindustan has added 58 lakh readers to its readership base. A
bulk of this growth has come from Uttar Pradesh where Hindustan has added 41 lakh
readers in this nine month period. Hindustan now has a 30% share of readership in Uttar
Pradesh, with a total readership of 1.28 crore in UP. Hindustan continues to maintain its
dominant position in Bihar and Jharkhand with 83% and 73% share of total readers.

The gains across all markets clearly demonstrate the growing strength of Hindustan daily.
With many of the newer editions yet to reflect in IRS, the growth momentum is likely to
be sustained.

HMVL files DRHP with SEBI for proposed public issue

Hindustan Media Ventures Ltd. is proposing, subject to market conditions and other
considerations, a public issue of its equity shares and has filed a Draft Red Herring
Prospectus with the Securities and Exchange Board of India ("SEBI"). The Draft Red
Herring Prospectus is available on the website of SEBI at www.sebi.gov.in and the
websites of the Book Running Lead Managers at www.edelcap.com and
www.kmcc.co.in. Investors should note that investment in equity shares involves a high
degree of risk and are requested to refer to the section titled "Risk Factors" of the Draft
Red Herring Prospectus for details of the same.

HMVL acquired "Hindi Business"

Hindustan Media Ventures Ltd (HMVL) acquires 'Hindustan', the Hindi daily,
"Ravivasariya Hindustan" ; Hindi magazines, 'Nandan' & 'Kadambini', and the internet
portals of these publications, from HT Media Limited (HTML), its promoter company.
As part of this transaction, all assets, liabilities and employees pertaining to this business
of HTML will be transferred to Hindustan Media Ventures Ltd. on a 'slump sale' and
'going concern' basis. The transaction shall be effective from December 1, 2009.

All relevant Intellectual Property Rights and Brands shall be used by Hindustan Media
Ventures Ltd. Company on a long-term lease basis.

Attached is the press release issued by HTML on this transaction.

INCREASE AND RE-CLASSIFICATION OF AUTHORISED SHARE CAPITAL

During the year under review, the Authorized Share Capital of your Company was
increased, as per details given below -

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 1. With effect from 5th January, 2010, from Rs. 17 Crore divided into 1,50,00,000
(One Crore Fifty lac) equity Shares of Rs. 10/- each and 20,00,000 (Twenty Lac)
Equity Shares of Rs. 10/- each with Differential Rights as to voting and/or
dividend to Rs. 77 Crore divided into 7,50,00,000 (Seven Crore Fifty Lac) Equity
Shares of Rs. 10/- each and 20,00,000 (Twenty Lac) Equity shares of Rs. 10/-
each with Differential Rights as to voting and/or dividend.
2. With effect from 11th February, 2010, from Rs. 77 Crore divided into 7,50,00,000
(Seven Crore Fifty lac) equity Shares of Rs. 10/- each and 20,00,000 (Twenty
Lac) Equity Shares of Rs. 10/- each with Differential Rights as to voting and/or
dividend to Rs. 87 Crore divided into 8,50,00,000 (Eight Crore Fifty Lac) Equity
Shares of Rs. 10/- each and 20,00,000 (Twenty Lac) Equity shares of Rs. 10/-
each with Differential Rights as to voting and/or dividend.

Subsequently, w.e.f. 28th February, 2010, the Authorized Share Capital of your Company
of Rs. 87 Crore was re-classified to comprise of 8,70,00,000 (Eight Crore Seventy Lac)
Equity Shares of Rs. 10/- each only.

ISSUE OF FRESH CAPITAL

During the year, the paid-up share capital was increased as per following details -

1. On 14th January, 2010, 6,96,508 and 37,338 Equity Shares of Rs. 10/- each were
allotted at Rs. 650/- per share (inclusive of Premium of Rs.640/-) to HT Media
Limited and Smt. Namrata Bhartia trustee of HT Group Companies- Employee
Stock Option Trust, respectively on preferential basis.
2. On 21st February, 2010, 4,94,08,614 Equity Shares of Rs.10/- each were allotted
as bonus shares in the ratio of 6.4 Equity Shares of Rs. 10/- each, for every 1
Equity Share of Rs. 10/- held on the record date i.e. 20th February, 2010.

Page 27 of 73
OBJECTIVES OF STUDY

 Cost analyses can provide estimates of what a program's costs and benefits are
likely to be, before it is implemented. "Ex-ante" or "before the fact" cost analyses
may have to be based on very rough estimates of costs and expected benefits.
However, if a program is likely to be very expensive to implement, very difficult
to "un-do" once it is in place, or very difficult to evaluate, even a rough estimate
of efficiency may be quite valuable in the planning stages (Rossi & Freeman,
1993).
 Cost analyses may improve understanding of program operation, and tell what
levels of intervention are most cost-effective. A careful cost analysis within a
program might tell you, for example, that it doesn't so much matter whether you
have a half-day program or a full-day preschool program for children, but that the
teacher-to-child ratio does matter (that is, children benefit more from low ratios
than they do from longer days). This information might influence decisions about
how many teachers you need to hire, or how many classrooms you need, or how
many children you can serve effectively.
 Cost analyses may reveal unexpected costs. A speech therapy program might
unexpectedly find that it costs more to use paraprofessionals to work with children
than professionals, because the paraprofessionals need more training and
supervision, or work with fewer children at a time (White, 1988). Or, cutting the
number of home visits allowed by caseworkers serving a large rural area (in order
to save on mileage reimbursements) might have the unplanned result of higher
long-distance phone bills, because the workers still feel a need to stay in close
touch with their clients.

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SCOPE :

Cost analysis can be used at several levels . At the most basic level, cost
allocation is simply part of good program budgeting and accounting practices ,
which allow managers to determine the true cost of providing a given unit of service.
it deals with cost allocation , cost effectiveness and cost benefit.

Five Tiers :

Tier 1 – Program definition

Tier 2 – Accountability

Tier 3 – Understanding & refining

Tier – 4 Progam towards objective

Tier 5 – Program impact

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COST ANALYSIS METHODOLOGY :
PRIMARY DATA COLLECTION :-
 All the data collection process has been carried out through the constitutions
with the staff members concerned in the department of finance in the
organization.

 Direct interactions with the manager, The accountants and the related staff
concern helped me in gathering of the required data.

 Took the help of the management from the other departments and the guidance
from the internal guide.

SECONDATY DATA COLLECTION :-

 Certain assumptions have been made in regard to the future projects of the
company.

 The data have been prepared in the consultation with the various personals of
the organization indirectly.

 The changes in capital due to expected better management have been taken in
the account while calculating the related capital structures.

 The results of the capital structures forecasts have been analyzed to give
suggestions for improvement of the performance of the Organization.

Page 30 of 73
Page 31 of 73
LIMITATIONS OF COST ANALYSES :

 Whether or not the program is having a significant net effect on the desired
outcomes. Unless you know for sure that the program is producing a benefit, it
doesn't make sense to talk about the cost of producing that benefit (Rossi &
Freeman, 1993). Cost analysis may be considered an extension of an impact or
outcome evaluation, but it cannot take the place of one.

 Whether the least expensive alternative is always the best alternative. Often
political or social values other than cost need to determine program and policy
choices. When there are competing values or goals involved, cost analysis is often
just one factor to be considered, and we need to have some other way of deciding
which factors should take priority.

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 CHAPTER 2

RESEARCH
METHODOLOGY

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 RESEARCH:

The systematic and Objective process of gathering, recording and analyzing data
for aid in making business decision or finding solution of business problems.

Research Process:

Every research project has order of sequence of activity. In this project, these are
main activities (stages).

Research Design:

Research Design is master plan specifying the methods and procedures for
collecting and analyzing the needed information.

Research type: Descriptive research

Procedure: collect data from expenditure record available in different branches of

Hindustan Time

Page 34 of 73
THEORITICAL FRAME WORK:

COST ANALYSIS METHODS

 Main Types of Cost Analysis

 Quandrants of Cost-Effectiveness
 Key Attributes of Cost Analyses
 Collecting Cost Data Alongside Clinical Studies

Studies of costs and related economic implications comprise a major group of

methods used in HTA. These studies can involve attributes of either or both of primary
data collection and integrative methods. That is, cost data can be collected as part of
RCTs and other clinical studies, as well as administrative databases used in health care
payment. Cost data from one or more such sources often are combined with data from
primary clinical studies, epidemiological studies, and other sources to conduct cost-
effectiveness analyses and other cost studies that involve weighing health and economic
impacts of health technology.

Interest in cost analyses has accompanied concerns about rising health care
costs, pressures on health care policymakers to allocate resources, and the need for health
product makers and other technology advocates to demonstrate the economic benefits of
their technologies. This interest is reflected in a considerable increase in the number of
reports of cost analyses in the literature and further refinement of methods.

Main Types of Cost Analysis

There is a variety of approaches to cost analysis, the suitability of any of which

depends upon the purpose of an assessment and the availability of data and other
resources. It is rarely possible or necessary to identify and quantify all costs and all
benefits (or outcomes), and the units used to quantify these may differ.

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Main types of cost analysis include the following.

 Cost-of-illness analysis : determination of the economic impact of an illness or

condition (typically on a given population, region, or country) e.g., of smoking, arthritis
or bedsores, including associated treatment costs

 Cost-minimization analysis : determination of the least costly among alternative

interventions that are assumed to produce equivalent outcomes

 Cost-effectiveness analysis (CEA): a comparison of costs in monetary units with

outcomes in quantitative non-monetary units, e.g., reduced mortality or morbidity

 Cost-utility analysis (CUA): a form of cost-effectiveness analysis that compares

costs in monetary units with outcomes in terms of their utility, usually to the patient,
measured, e.g., in QALYs

 Cost-consequence analysis: a form of cost-effectiveness analysis that presents

costs and outcomes in discrete categories, without aggregating or weighting them

 Cost-benefit analysis (CBA): compares costs and benefits, both of which are
quantified in common monetary units.

The valuation of costs and outcomes among these alternative economic

analyses.

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Different Types of Economic Analysis

Valuation Valuation of Outcomes

of Costs
Cost of Illness $ vs. None
Cost Minimization $ vs. Assume same
Cost Effectiveness $ ÷ Natural units
Cost Utility $ ÷ Utiles (e.g., QALYs)
Cost Benefit $ ÷ or - $

Cost - minimization analysis, CEA and CUA necessarily involve comparisons of

alternative interventions. A technology cannot be simply cost effective, though it may be
cost effective compared to something else. Although CBA typically involves comparisons
of alternative technologies, this is not necessary.

Because it measures costs and outcomes in monetary (not disease-specific) terms,

CBA enables comparison of disparate technologies, e.g., coronary artery bypass graft
surgery and screening for breast cancer. A drawback of CBA is the difficulty of assigning
monetary values to all pertinent outcomes, including changes in the length or quality of
human life. CEA avoids this limitation by using more direct or natural units of outcomes
such as lives saved or strokes averted. As such, CEA can only compare technologies
whose outcomes are measured in the same units. In CUA, estimates of utility are assigned
to health outcomes, enabling comparisons of disparate technologies.

Two basic approaches for cost-benefit analysis (CBA) are ratio approach and the net
benefit approach. The ratio approach indicates the amount of benefits (or outcomes) that
can be realized per unit expenditure on a technology vs. a comparator. In the ratio

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approach, a technology is cost beneficial vs. a comparator if the ratio of the change in
costs to the change in benefits is less than one. The net benefits approach indicates the
absolute amount of money saved or lost due to a use of a technology vs. a comparator. In
the net benefits formulation, a technology is cost-beneficial vs. a comparator if the net
change in benefits exceeds the net

change in costs. The choice between a net benefits approach or a benefit/cost approach
for a CBA can affect findings. The approach selected may depend upon such factors as
whether costs must be limited to a certain level, whether the intent is to maximize the
absolute level of benefits, whether the intent is to minimize the cost/benefit ratio
regardless of the absolute level of costs, etc. Indeed, under certain circumstances these
two basic approaches may yield different preferences among alternative technologies.

Box 19 shows basic formulas for determining CEA, CUA, and CBA.

Basic Formulas for CEA, CUA, and CBA

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COST ANALYSIS RATIOS :

Page 39 of 73
Quadrants of Cost-Effectiveness

A basic approach to portraying a cost-effectiveness (or cost-utility) comparison

of a new intervention to a standard of care is to consider the cost and effectiveness of a
new intervention in the space of four fields as shown in Box 20, starting with the upper

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figure. The level of costs and the level of effectiveness for the standard of care are
indicated by the "X" in the middle of the figure. A new intervention may have higher or
lower costs, and higher or lower effectiveness, such that its plot may fall into one of the
four quadrants surrounding the costs and effectiveness of the standard of care. If it is
known that the plot of the new intervention falls into either of two of the quadrants, i.e.,
where the new intervention has higher costs and lower effectiveness (indicating that it
should be rejected), or it has lower costs and higher effectiveness (indicating that it
should be adopted), then no further analysis may be required. If it is known that the plot
of the new intervention falls into either of the other two quadrants, i.e., where the new
intervention has higher costs and higher effectiveness, or it has lower costs and lower
effectiveness, then further analysis weighing the marginal costs and effectiveness of the
new intervention compared to the standard of care may be required.

Within either of the two quadrants that entail weighing tradeoffs of costs and
effectiveness, it may be apparent that the marginal tradeoff of costs and outcomes is so
high or low as to suggest rejection or adoption. As shown in the lower figure of Box 20,
this arises when the new intervention yields only very low marginal gain in effectiveness
at a very high marginal cost (reject), or yields very high marginal improvements in
effectiveness at a very low marginal cost (adopt).

Key Attributes of Cost Analyses

The approaches to accounting for costs and outcomes in cost analyses can vary in a
number of important respects, some of which are addressed briefly below. These should
be carefully considered by assessors, as well as the policymakers who intend to make use
of assessment findings. Given the different ways in which costs and outcomes may be
determined, all studies should make clear their methodology in these respects (Byford
1998; Drummond 1997; Gold 1996).

Comparator. Any cost analysis of one intervention versus another must be specific about
the comparator. This may be standard of care (current best practice), minimum practice,
or no intervention. Some analyses that declare the superiority of a new intervention may
have used a comparator that is no longer in practice or is considered sub-standard care or
that is not appropriate for the patient population of interest.

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 Perspective. The perspective of a cost analysis refers to the standpoint at which
costs and outcomes (or consequences or benefits) are realized. For instance, the
perspective of an analysis may be that of society overall, a third-party payer, a physician,
a hospital, or a patient. Clearly, costs and outcomes are not realized in the same way from
each of these perspectives. Many analysts favor using the broad perspective of society
and identifying all costs and all outcomes accordingly. However, "society" as such may
not be the decision maker, and what is cost effective from that perspective may not be
what is cost effective from the standpoint of a ministry of health, third-party payer,
hospital manager, patient, or other decision maker. It is possible that this perspective may
resemble that of a national or regional government, if indeed that government experiences
(or is responsible for representing the perspectives of those that experience) all of the
costs and outcomes that are included in a societal perspective.

Quadrants of Cost-Effectiveness

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Page 43 of 73
 Direct Costs. Depending upon the perspective taken, cost analyses should identify
two types of direct costs. Direct costs represent the value of all goods, services, and other
resources consumed in providing health care or dealing with side effects or other current
and future consequences of health care. Two types of direct costs are direct health care
costs and direct non-health care costs.

Direct health care costs include costs of physician services, hospital services,
drugs, etc. involved in delivery of health care. Direct non-health care costs are incurred in
connection with health care, such as for care provided by family members and
transportation to and from the site of care. In quantifying direct health care costs, many
analyses use readily available hospital or physician charges (i.e., price lists) rather than
true costs, whose determination may require special analyses of resource consumption.
However, charges (as well as actual payments) tend to reflect provider cost shifting and
other factors that decrease the validity of using charges to represent the true costs of
providing care.

Indirect Costs. Analyses should account for indirect costs, sometimes known
as "productivity losses." These include the costs of lost work due to absenteeism or early
retirement, impaired productivity at work, and lost or impaired leisure activity. Indirect
costs also include the costs of premature mortality. Intangible costs of pain, suffering, and
grief are real, yet very difficult to measure and are often omitted from cost analyses.

Time Horizon. Interpretation of cost analyses must consider that the time
horizon (or time-frame) of a study is likely to affect the findings regarding the relative
magnitudes of costs and outcomes of a health care intervention. Costs and outcomes
usually do not accrue in steady streams over time. Comparisons of costs and outcomes
after one year may yield much different findings than comparisons made after 5, 10, or 25
years. The meaningful time horizons for assessing the cost horizons of each of emergency
appendectomies, cholesterol-lowering in high-risk adults, and smoking cessation in
teenagers are likely to be quite different.

For example, an analysis conducted for the Medicare program in the US to determine cost
and time tradeoffs of hemodialysis and kidney transplantation showed that the annualized

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 expenditure by the Medicare End-Stage Renal Disease Program for a dialysis patient was
$32,000. Although patients with functioning transplanted kidneys required a first-year
expenditure of $56,000, they cost Medicare only an average of $6,400 in succeeding
years. On average, estimated cumulative dialysis and transplantation costs reach a break-
even point in about three years, after which transplantation provides a net financial gain
compared to dialysis (Rettig 1991).

Time horizons should be long enough to capture streams of health and economic
outcomes (including significant intended and unintended ones). These could encompass a
disease episode, patient life, or even multiple generations of life (such as for interventions
in women of child-bearing age or interventions that may cause heritable genetic changes).
Quantitative modeling approaches may be needed to estimate costs and outcomes that are
beyond those of available data. Of course, the higher the discount rate used in an analysis,
the less important are future outcomes and costs.

Average Costs vs. Marginal Costs. Assessments should make clear whether
average costs or marginal costs are being used in the analysis. Whereas average cost
analysis considers the total (or absolute) costs and outcomes of an intervention, marginal
cost analysis considers how outcomes change with changes in costs (e.g., relative to a
comparator), which may provide more information about how to use resources efficiently.
Marginal cost analysis may reveal that, beyond a certain level of spending, the

Additional benefits are no longer worth the additional costs. For example, as
shown in Box 21, the average cost per desired outcome of an iterative screening test may
appear to be quite acceptable (e.g.,$2,451 per case of colorectal cancer detected assuming
a total of six tests per person), whereas marginal cost analysis demonstrates that the cost
of adding the last test (i.e., the additional cost of the sixth test per person) to detect
another case of cancer would be astronomical.

USING COST ANALYSES WITH THE STATE STRENGTHENING EVALUATION GUIDE:

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 If you are using the Five-Tiered Approach to Program Evaluation outlined in the
State Strengthening Evaluation Guide, cost analyses can be used at several levels:

Tier 1 - Program Definition

At this stage, you will probably be using cost studies based on other people's
experience in similar programs, since you are unlikely to have cost data of your own yet.
This means that the estimates you use will only be approximations, and may not
accurately reflect what your program's experience will be. However, "ex-ante" cost
analyses, done in the planning stages before implementing a program, can potentially
prevent some very costly mistakes. If you have access to cost-effectiveness studies of
programs similar to the one you are considering, especially if they allow you to compare
the relative costs and benefits of several different ways of delivering a service, before you
have made substantial investments of time or money, some program design decisions may
be easier. One common example in community-based programs is staffing (eg., deciding
whether to use highly-trained professionals to deliver services, or to rely on less highly-
paid paraprofessionals or volunteers). While many people assume that the
paraprofessionals or volunteers are always less expensive, cost-effectiveness studies in
some cases have found that the professionals may be less costly in the long run because
they can see more clients, require less supervision time, or are more effective. Of course,
costs also need to be weighed against other considerations, such as the fact that
paraprofessionals recruited from the community served may more easily gain the trust of
clients.

Tier 2 - Accountability

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 Clearly, fiscal accountability is one of the primary reasons for using any kind of
cost analysis as part of your evaluation. Any responsible program should keep service
statistics and financial records that are accurate and up-to-date enough to be able to
determine some very basic information about unit costs, and funders usually require this.
However, the minimal information routinely collected by programs for fiscal and
reporting purposes is not always in a form that lends itself to evaluation uses.

Tier 3 - Understanding and Refining

Like any other type of information gathered for evaluation purposes, the cost
information collected in Tier 2 for accountability purposes provides programs with a basis
for mid-course adjustments and program refinements, either at the end of a funding cycle,
or in the course of implementation.

Tier 4 - Progress Toward Objectives

Using cost information in Tier 4 is closely tied to the program design issues of
Tier 1, and the accountability issues of Tier 2. If appropriate program outcomes and
indicators have been identified in Tier 1, and the appropriate unit cost information is
included in the routine data that is collected as part of Tier 2, then the job of identifying
progress toward objectives in Tier 4 becomes much easier.

Tier 5 - Program Impact

When it has been possible to conduct a full-scale cost-benefit analysis over a long
period of time, and it shows significant long-term gains and cost savings in a particular
population or problem area, the policy implications may be great. One of the best-known
examples is the Perry Preschool Study (discussed earlier), which has been credited with
persuading lawmakers to sustain or significantly increase their support for early
intervention programs, including Head Start.

HOW TO BUDGET & ALLOCATE COSTS FOR COST EFFECTIVENESS STUDIES:

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 The type of budgeting and accounting system your program or agency uses
may well determine how much useful cost data is available for evaluating your program,
or comparing it to others. Three major types of budgeting formats commonly used in
social service programs will provide different types and amounts of information (Kettner,
Moroney, & Martin, 1990).

The most common format is the Line-Item Budget format, which simply looks at
revenues (money coming in from various sources, including grants, user fees or United
Way funds) and expenditures (costs broken down into broad categories like salaries, rent,
utilities, and postage), and tries to ensure that they balance. The main purpose of a line-
item budget is financial control, and the categories are usually too broad to give much
information about the cost of providing a particular service or obtaining a particular
result.

The Functional Budget format starts with a line-item budget, and takes it a step
further. It focuses on process, or the cost of providing a service. For example, with a
Functional Budget, we could determine that it cost an adoption agency $45,000 to
conduct 100 home studies (an activity which is a necessary part of the process of placing
children in permanent homes).

The Program Budget, which also starts with a line-item budget, looks at the
same information from the point of view of outcomes, or the cost of achieving a result.
For example, if the 100 home studies resulted in actually placing 50 children in adoptive
homes, the Program Budget would allow us to say that it cost the agency $45,000 to place
50 children, which is an outcome.

Another way to look at this is that functional budgets measure productivity, and
program budgets measure the cost of achieving goals and objectives.

COMMON STEPS IN DEVELOPING PROGRAM & FUNCTIONAL BUDGETS

(Kettner, et al., 1990):

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1. Develop a line-item budget that shows all expenditures. This is the minimal level of
budgeting and accounting that is required by many funders, such as the United Way.
Some funders require a specific format, so that the categories used are standard across the
programs that they fund.

2. Determine the agency's program structure. A distinct program is a set of activities or

services designed to accomplish a specific set of agency goals and objectives. Many
agencies have several different programs.

3. Identify all direct costs and indirect costs. Direct costs are those that benefit only one
program (for example, salaries of staff who work only for one program, or supplies and
equipment used only for that program). Indirect costs or "overhead" costs are those that
benefit or are shared by more than one program (for example, several programs in an
agency might share the same building, and be served by the same bookkeeping and
secretarial staff, utilities, or janitorial services).

4. Assign direct costs to the appropriate program or project. This is usually fairly
straightforward. If one county agent has full-time responsibility for operating your State
Strengthening project, for example, then 100% of his or her salary and benefits would be
assigned as an expense to that project in the budget. If a staff member spends 50% of his
or her time on the State Strengthening project and 50% on another assignment, then half
of that person's salary and benefits would be assigned to the State Strengthening project
as a direct cost.

5. Allocate indirect costs to programs. Deciding how to divide up the indirect (shared)
cost pool among several programs in the agency can be much more complicated and
technical. The actual practice of allocating or dividing up the indirect costs is usually best
left to an accountant. There are several methods for doing this, each with particular
advantages and disadvantages

6. Determine total program costs. The total cost of a particular program (such as your
State Strengthening project) is the sum of the direct costs, and the portion of indirect costs
that is allocated to that program.

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 Once we have this information about total program costs, then we can calculate
unit costs. For a Functional Budget, this involves defining the units of service for each
program (eg., hours of day care provided, meals delivered, home studies conducted), and
calculating the cost per unit of service. In the adoption agency example above, the unit
cost of conducting a home study would be $450 (total program cost divided by number of
units of service provided). For a Program Budget, the final steps are determining the total
cost of achieving the outcome objectives for the year, and calculating the cost per
outcome. Using the adoption example again, we can say that the adoption agency
described above successfully placed children in adoptive homes at a unit cost of
$900/child (total program costs divided by the number of successful outcomes).

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EFFICIENCY & COST - EFFECTIVENESS STUDIES:

From the point of view of program evaluation, both the Program and Functional
Budgeting systems are more useful than a Line-Item Budget. Unit cost information allows
for useful comparisons of the costs of delivering services and getting results. With this
information, we can look at the unit cost of one adoption agency compared to another, to
see whether one operates more efficiently. We can also compare the unit cost (per child)
of adoptive placement to the unit cost (per child) of placement in foster care or residential
treatment. This is basically what happens in a cost-effectiveness study.

In general, a cost-effectiveness study is more appropriate than a cost-benefit

analysis when your goals or outcomes can't easily be quantified or monetized, or when
there are multiple competing goals. As with budgeting and cost allocation, there are a
variety of approaches to cost-effectiveness studies. The approach that is best for your
purposes will depend on a number of factors. A good source of more detailed information
about deciding what approach is most appropriate, and conducting the various types of
cost-effectiveness studies, is Weimer & Vining (1992).

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 HOW TO CONDUCT A COST - BENEFIT ANALYSIS:

Cost-benefit analysis is by far the most complex and controversial of the three methods of
costs analysis we have discussed. It should not be attempted by those who lack technical
expertise in this area. However, for some purposes, it is also one of the most powerful
methods. For those who decide to undertake a cost-benefit analysis in spite of the
difficulties, Barnett (1993) outlines a nine step process. Various standard texts are
recommended for more in-depth information (see below).

 Step 1: Define the Scope or Perspective of the Analysis - The first step is to describe the
alternative(s) to be evaluated, and determine whose perspective will guide the evaluation. A
narrow cost analysis might look only at the monetary costs and benefits to the individual
participant or target of services, or to a particular funder or agency. A broader perspective
might attempt to look at a wide range of costs and consequences (intended and unintended,
direct and indirect) for society as a whole. A program that is not cost-effective from the
perspective of a particular agency within its limited mission and budget may well be cost-
effective from the perspective of society, because it saves expenses or prevents problems in
other areas. Rossi and Freeman (1993) note that because different stakeholders may have
different values and priorities, mixing different viewpoints is likely to result in "confused
specifications and overlapping or double counting." Whether we like it or not, the perspective
chosen for cost evaluation may have political implications.
 Step 2: Conduct Cost Analysis - The next step is to identify and estimate the monetary value of
all resources used in the intervention, not just the budgetary costs. Some costs, such as
salaries of direct service staff, rental of office space, or program supplies, are obvious and
simple to determine. Indirect costs of supervision and administration need to be included as
well. Other resources and costs may go well beyond the items that are usually included in an
agency budget. Sometimes "overhead" (like office space or supervision) is provided as an in-
kind service by an existing agency, but since there are probably some additional demands
made on the time of the agency staff, this should be figured into the "real" cost of the
intervention

 Step 3: Estimate Program Effects - This is where more traditional impact or outcome
evaluation methods come in. As noted earlier, if we don't know that there is a significant

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 beneficial effect of our program, there is little point in asking how much it costs to get the
effect, or whether it is more cost-effective than another kind of program. Many texts on
evaluation can assist you in designing a valid evaluation (Rossi & Freeman, 1993; State
Strengthening Evaluation Guide, 1997). Often it is not possible to use a true experimental
design in evaluating community-based programs, but there are a number of quasi-
experimental designs available (Cook & Campbell, 1979). Also, don't forget that it is often
possible to use existing data to estimate program effects, as well. If you are looking at an
ongoing program, or one that is based on a national model (such as the Parents As Teachers
program), check to see if formal evaluations have already been done elsewhere. You may also
be able to get useful information from the program's service statistics, or from local, state, or
federal census data [insert link here to Using Existing Data URL].

 Step 4: Estimate the Monetary Value of Outcomes - This is one of the most difficult and
controversial aspects of conducting a cost-benefit analysis, and it may require the help of
consultants. Some cost-savings are easier to estimate than others. For example, we may have
data that the average cost of placing a child in residential treatment is $20,000 a year, so if we
are able to prevent 20 children from being placed in residential treatment, the estimated
savings is 20 X $20,000. However, other important outcomes may be much less obvious, and
much harder to estimate.
 Step 5: Account for the Effects of Time - One of the trickiest and most technical aspects of
cost-benefit analysis, especially for longitudinal studies that follow clients or outcomes over a
period of years, is discounting of costs and calculating rates of return for alternative uses of
the money (such as investing it). This includes taking into account the effects of inflation on
the value of the dollar over time, or figuring the depreciation in the value of things like
buildings and other capital equipment. Similar issues apply in estimating the value of benefits
over a period of time. For example, if we want to look at the projected life-time earnings of a
teenager who stays in school due to a drop-out prevention program compared to one who
does not, we need to make projections

about wages. If we want to look at whether the government will eventually recover its
investment in the drop-out program through the taxes he or she will pay on the increased
income, we need to make projections about future tax rates as well. These projections all

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 require assumptions. Unless you or someone on the program staff has expertise in this area, it is
strongly advised that you seek out a skilled consultant to help with this step.

 Step 6: Aggregate and Apply a Decision Rule - If you are looking at the costs and benefits on
several outcomes (which is often the case), how will you decide which has priority? If a
program for pregnant teenagers results in healthier babies (and lower hospital costs), but not
in fewer repeat pregnancies, which outcome is more important?

 Step 7: Describe Distributional Consequences - This is related to choosing your perspective of

analysis. It involves specifying who gains and who loses under different conditions (because in
some cases, one party's benefit is another party's loss). This may be a highly controversial and
political step in the process.
 Step 8: Conduct Sensitivity Analysis - This step involves identifying the assumptions behind
your cost estimates, and considering how critical they are to your calculations. If one of your
assumptions turns out not to be accurate, or if conditions change during the time of your
study (for example, the minimum wage goes up, affecting salary costs), will that change your
whole conclusion, or is the effect strong enough that there is some leeway?
 Step 9: Discuss the Qualitative Residual - Since there are almost always some things that can't
be quantified or given monetary values, it is important that your report include some
discussion of these issues. A frank description of some of these qualitative issues in your
report can help round out your conclusions, and reduce the chances of your study being used
inappropriately.

Cost - Benefit Analysis

From Wikipedia, the free encyclopedia

Jump to: navigation, search

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Cost-benefit analysis is a term that refers both to:

 a formal discipline used to help appraise, or assess, the case for a project or proposal,
which itself is a process known as project appraisal; and
 an informal approach to making decisions of any kind.

Under both definitions the process involves, whether explicitly or implicitly,

weighing the total expected costs against the total expected benefits of one or more
actions in order to choose the best or most profitable option. The formal process is often
referred to as either CBA (Cost-Benefit Analysis) or BCA (Benefit-Cost Analysis).

A hallmark of CBA is that all benefits and all costs are expressed in money terms,
and are adjusted for the time value of money, so that all flows of benefits and flows of
project costs over time (which tend to occur at different points in time) are expressed on a
common basis in terms of their “present value.” Closely related, but slightly different,
formal techniques include Cost-effectiveness analysis, Economic impact analysis, Fiscal
impact analysis and Social Return on Investment(SROI) analysis. The latter builds upon
the logic of cost-benefit analysis, but differs in that it is explicitly designed to inform the
practical decision-making of enterprise managers and investors focused on optimizing
their social and environmental impacts.

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 CHAPTER 3

Analysis And Interpretation

Page 56 of 73
DATA ANALYSIS & INTERPRETATION :

Business Industrial Network

Don't be laymen by the low bars for the "Paper" industry. The survey participants did not
supply monthly T&M cost. This could be a result of participants not being aware of cost, or not
trusting that they remain anonymous in this survey.

Lost Production Cost

Industry

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Analysis:

This graph shows us just how unaware each industry is, of the "True Cost" of
downtime. For example it has been calculated in some paper facilities, that a corrugator
down cost 10K per hour. One might construed the bar for paper industry indicates the
corrugator has not been down for more than an hour the entire year! The graph indicates
the Automotive, Food and Metal industries are most aware of "True Cost" of downtime.

Once the tools and articles at bin95.com are used to calculate, track, and
benchmark the "True Cost" of downtime, this information should be used in daily
management decisions. (Such as repair or replace.)

This database and documentation is the confidential and proprietary information

of Business Industrial Network ("Confidential Information"). You shall not disclose such
Confidential Information and shall use it only in accordance with the terms of the license
agreement you entered into with Business Industrial Network.

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 OEM Response Time
lndustry

_ = Highest Maximum time reported by any one facility, waiting on OEM to respond.

_ = Average maximum time for industry that OEM took to respond.

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Analysis:
Note: These are averages among industry of maximum respond time. Not average
respond time of OEM. This graph is just to show extreme cases, to bring attention to cost
involved.

For example if you calculated your true cost of down time as $1,000 per hour, some
instances cost as much as $50,000. If that breakdown was a bottle neck, the hourly cost
could escalate to over a half a million!

This is yet another example of why you should take out insurance against costly
downtime, and subscribe to Business Industrial Network's technical resources.
(If you only shave 10% off one instance, with our services, you could see a ROI of more
than 500%.)

Page 60 of 73
 EXPENSES IN SAHARANPUR DISTRICT
70,000
60,000
50,000
Oct-10
40,000
Nov-10
30,000 Dec-10
20,000 Jan-10
Feb-10
10,000
Mar-10
-
nt hip ing ine ile py ary ing to ing ers are ing ity ice ier er
Re ers Hir ndl ob toco on vell Pho eep pap elf nn ctric serv our tain
in . La M o ati ra k s w ru le s C Re
eta omp P h St T use ew p. tor E ew s-
N m
R C Ho E er
n
N
vice
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s Se
w
Ne

From above graph it is clear that expenses in NEWS Services retainer is

maximum specially in the month of December

Page 61 of 73
 EXPENSES IN MUZAFARNAGAR DISTRICT
100,000
90,000
80,000
70,000
60,000 Oct-10
50,000 Nov-10
40,000 Dec-10
30,000 Jan-10
20,000 Feb-10
10,000 Mar-10
-
nt hip ing ine ile py ary ing to ing ers are ing ity ice ier er
Re ers Hir ndl ob toco on vell Pho eep pap elf nn ctric serv our tain
in . La M o ati ra k s w ru le s C Re
eta omp P h St T use ew p. tor E ew s-
N m
R C Ho E er
n
N
vice
Ge r
s Se
w
Ne

Page 62 of 73
 EXPENSES IN BIJJNORE DISTRICT
80,000
70,000
60,000
50,000 Oct-10
40,000 Nov-10
30,000 Dec-10
Jan-10
20,000
Feb-10
10,000 Mar-10
-
nt hip ing ine ile py ary ing to ing ers are ing ity ice ier er
Re ers Hir ndl ob toco on vell Pho eep pap elf nn ctric serv our tain
in . La M o ati ra k s w ru le s C Re
eta omp P h St T use ew p. tor E ew s-
N m
R C Ho E er
n
N
vice
Ge r
s Se
w
Ne

Page 63 of 73
 EXPENSES IN BULANDSHAHAR DISTRICT
80,000
70,000
60,000
50,000 Oct-10
40,000 Nov-10
30,000 Dec-10
Jan-10
20,000
Feb-10
10,000 Mar-10
-
nt hip ing ine ile py ary ing to ing ers are ing ity ice ier er
Re ers Hir ndl ob toco on vell Pho eep pap elf nn ctric serv our tain
in . La M o ati ra k s w ru le s C Re
eta omp P h St T use ew p. tor E ew s-
N m
R C Ho E er
n
N
vice
Ge r
s Se
w
Ne

Page 64 of 73
 EXPENSES IN BAGPAT DISTRICT
80,000
70,000
60,000
50,000 Oct-10
40,000 Nov-10
30,000 Dec-10
Jan-10
20,000
Feb-10
10,000 Mar-10
-
nt hip ing ine ile py ary ing to ing ers are ing ity ice ier er
Re ers Hir ndl ob toco on vell Pho eep pap elf nn ctric serv our tain
in . La M o ati ra k s w ru le s C Re
eta omp P h St T use ew p. tor E ew s-
N m
R C Ho E er
n
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vice
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w
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Page 65 of 73
 EXPENSES IN SARDHANA DISTRICT
80,000
70,000
60,000
50,000 Oct-10
40,000 Nov-10
30,000 Dec-10
Jan-10
20,000
Feb-10
10,000 Mar-10
-
nt hip ing ine ile py ary ing to ing ers are ing ity ice ier er
Re ers Hir ndl ob toco on vell Pho eep pap elf nn ctric serv our tain
in . La M o ati ra k s w ru le s C Re
eta omp P h St T use ew p. tor E ew s-
N m
R C Ho E er
n
N
vice
Ge r
s Se
w
Ne

Page 66 of 73
 EXPENSES IN MAWANA DISTRICT
4500
4000
3500
3000
Oct-10
2500
Nov-10
2000 Dec-10
1500 Jan-10
1000 Feb-10
500 Mar-10
0
nt hip ing ine ile py ary ing to ing ers are ing ity ice ier er
Re ers Hir ndl ob toco on vell Pho eep pap elf nn ctric serv our tain
in . La M o ti a k s w ru le s C Re
eta omp P h Sta Tr use ew p. tor E ew s-
N m
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Page 67 of 73
 CHAPTER 4

FINDING AND INFERENCES

Page 68 of 73
 CHAPTER 5

RECOMMENDATIONS

Page 69 of 73
 Recommendation for the Hindustan Times

After analysing costing in different branches of Hindustan Time it is clear that

expenses on News Services retainer is higher in all months, which have to reduces

Company has unnecessary expenses on Hiring of Computer which can be reduces

by using own computers

Company have more Expenses on landline call which can also be reduced by
connecting offices by local line\

Page 70 of 73
BIBLIOGRAPHY:
Financial accounting

Cost and management accounting

Financial accounting

Accounting for management

Website :

www.google.com

www.hindustantitmes.com

www.yahoofinance,com

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i