A PROJECT REPORT ON CRITICAL REVIEW OF WORKING CAPITAL CAPITAL MANAGEMENT "Reliance Securities Ltd."
In Partial Fulfillment For The Award Award Of The Degree Of Master Of Business Administration nder the !u"er#ision of Mr. Mr. AMIT KMAR MIS!RA Relatins#i$ Mana%er
B$ !ARS! SRIVASTAVA Rll N& '())'*'+))*, IIIrd !em
NIVERSIT- OF LCKNOW IMS LCKNOW %
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/ECLARATION I 'AR!' 'AR!' !RI( !RI(A!TA A!TA(A) Roll Roll No* %+,,%-%. %+,,%-%.,,-/ ,,-/ here01 here01 de2lar de2laree that that the "Criti tica call Re0i Re0ie1 e1 2 Wr3i r3in% n% Ca$i Ca$ita tall summ summer er trai raining ning "ro3 "ro3e2 e2tt re"or e"ortt To"i o"i2 "Cri Mana%e4ent 51it# s$ecial re2erence t Reliance Securities Ltd.6" su0mitted 01 me in
"artial fulfillment for the award of the MBA degree from ni#ersit1 of 4u25now) IM! 4u25now is an out2ome of m1 own efforts and is an original "ie2e of resear2h wor5* It 2ontains nonmaterial nonmaterial "re#iousl1 "re#iousl1 "u0lished "u0lished or written written 01 an1 other "erson) "erson) nor an1 material whi2h to a su0stantial e6tent has 0een a22e"ted for the award of an1 other degree7di"loma of an1 other Institute7ni#ersit1) e62e"t where due a25nowledgement has 0een made in the te6t*
'AR!' !RI(A!TA(A
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ACKNOWLE/GEMENT
I am ionde0ted to m1 "ro3e2t guide Mr. Pan3a7 Mis#ra 82enter manager9 who ga#e me guidan2e) en2ouragement and ins"iration throughout the "ro3e2t* I am #er1 grateful to him for his su""ort that ena0led me to enah2ne m1 5nowledge and hel"ed to draft teh re"ort* I also e6"ress m1 sin2ere than5s to Mr. Ra#ul Ra78a0ard#an Mis#ra 8o"eration manager9 for hel"ing me and guiding me in 2om"leting m1 "ro3e2t* All in all) all) it was the "leasan "leasantt learni learning ng e6"erie e6"erien2e n2e for me in Reliance Securities Ltd. than5s to all seniors and staff for ma5ing it so memora0le* It was their en2ouragement that su""ort and 2o:o"eration) whi2h made me) gi#e some meaning to m1 "ro3e2t*
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TA9LE OF CONTENT
Introdu2tion Com"an1 Profile O03e2ti#es Of The !tud1 Resear2h Methodolog1 Data Colle2tion Data Anal1sis < Inter"retation O0ser#ations < Findings Con2lusion < !uggestion Bi0liogra"h1 Anne6ure
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INTRODUCTION
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Intrductin Wr3in% Wr3in% ca$ital 4ana%e4ent >or5ing 2a"ital refers to that "art of the firm?s 2a"ital whi2h is re@uired for finan2ing short: term or 2urrent assets su2h as 2ash) mar5eta0le se2urities) de0tors < in#entories* Funds) thus) in#ested in 2urrent assts 5ee" re#ol#ing fast and are 0eing 2onstantl1 2on#erted in to 2ash and this 2ash flows out agai again n in e62h e62han ange ge for for othe otherr 2urre 2urrent nt asse assets ts** 'en2 'en2e) e) it is also also 5now 5nown n as re#ol#ing or 2ir2ulating 2a"ital or short term 2a"ital* >or5i or5ing ng 2a"i 2a"ita tall mana manage geme ment nt is 2on2 2on2er erne ned d with with the the "ro0 "ro0le lems ms aris arisee in attem"ting attem"ting to manage manage the 2urrent assets) the 2urrent 2urrent lia0ilitie lia0ilitiess and the inter inter relationshi" that e6ist 0etween them* The term 2urrent assets refers to those assets whi2h in ordinar1 2ourse of 0usiness 2an 0e) or) will 0e) turned in to 2ash within one 1ear without undergoing a diminution in #alue and without disru"ting the o"eration of the firm* firm* The ma3or ma3or 2urren 2urrentt assets assets are 2ash) 2ash) mar5eta mar5eta0le 0le se2uri se2uritie ties) s) a22oun a22ountt re2ei#a0le and in#entor1* Current lia0ilities ware those lia0ilities whi2h intended at there in2e"tion to 0e "aid in ordinar1 2ourse 2ourse of 0usiness) within a 1ear) 1ear) out of the 2urrent assets or earnings of the 2on2ern* The 0asi2 2urrent lia0ilities are a22ount "a1a0le) 0ill "a1a0le) 0an5 o#er:draft) o#er:draft) and outstanding outstanding e6"enses* The goal of wor5ing 2a"ital management is to manage the firm?s 2urrent asse assets ts and and 2urre 2urrent nt lia0 lia0il ilit itie iess in su2h su2h wa1 wa1 that that the the sati satisf sfa2 a2to tor1 r1 le#e le#ell of wor5ing 2a"ital is mentioned* /e2initin:& A22ording to uttmann < Dougall:
E62ess of 2urrent assets o#er 2urrent lia0ilities* A22ording to Par5 < ladson: The e62ess of 2urrent assets of a 0usiness 8i*e* 2ash) a22ounts re2ei#a0les) in#entories9 o#er 2urrent items owned to em"lo1ees and others 8su2h as salaries < wages "a1a0le) a22ounts "a1a0le) ta6es owned to o#ernment9*
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Ca"ital re@uired for a 0usiness 2an 0e 2lassified under two main 2ategories #ia) %9
Fi6ed Ca"ital
&9
>or5ing Ca"ital
E#er1 0usiness 0usiness needs funds for two "ur"oses "ur"oses for its esta0lish esta0lishment ment and to 2arr1 out its da1: to:da1 o"erations* 4ong terms funds are re@uired to 2reate "rodu2tion fa2ilities through "ur2hase of fi6ed assets su2h as "
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CONCEPT OF WORKING CAPITAL
There are two 2on2e"ts of wor5ing 2a"ital %*
ross wor5ing 2a"ital
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Net wor5ing 2a"ital
The gross wor5ing 2a"ital is the 2a"ital in#ested in the total 2urrent assets of the enter"rises 2urrent assets are those assets whi2h 2an 2on#ert in to 2ash within a short "eriod normall1 one a22ounting 1ear* CONSTITENTS OF CRRENT ASSETS
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Cash in hand and 2ash at 0an5
&9
Bills re2ei#a0les
-9
!undr1 de0tors
;9
!hort term loans and ad#an2es
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In#entories of sto25 as a*
Raw material
0*
>or5 in "ro2ess
2*
!tores and s"ares
d*
Finished goods
.* Tem"orar1 Tem"orar1 in#estment of sur"lus funds* /* Pre"aid e6"enses
+* A22rued in2omes* * Mar5eta0le se2urities* In a narr narrow ow sens sense) e) the the term term wor5 wor5in ing g 2a"i 2a"ita tall refe refers rs to the the net net wor5ing* Net wor5ing 2a"ital is the e62ess of 2urrent assets o#er 2urrent lia0ilit1) or) sa1 NET WORKING CAPITAL ; CRRENT ASSETS < CRRENT LIA9ILITIES.
Net wor5ing 2a"ital 2an 0e "ositi#e or negati#e* >hen the 2urrent assets e62eeds the 2urrent lia0ilities are more than the 2urrent assets* Current lia0ilities are those lia0ilities) whi2h are intended to 0e "aid in the ordinar1 2ourse of 0usiness within a short "eriod of normall1 one a22ounting 1ear out of the 2urrent assts or the in2ome 0usiness* CONSTITENTS OF CRRENT LIA9ILITIES
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A22rued or outstanding e6"enses*
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!hort term loans) ad#an2es and de"osits*
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Di#idends "a1a0le*
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Ban5 o#erdraft*
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Pro#ision for ta6ation) if it does not amt* to a""* of "rofit*
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Bills "a1a0le*
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!undr1 2reditors*
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CLASSIFICATION OF WORKING CAPITAL CAPITAL
>or5ing 2a"ital ma1 0e 2lassified in to wa1s o
On the 0asis of 2on2e"t*
o
On the 0asis of time*
On the 0asis of 2on2e"t wor5ing 2a"ital 2an 0e 2lassified as gross wor5 wor5in ing g 2a"i 2a"ita tall and and net net wor5 wor5in ing g 2a"i 2a"ita tal* l* On the the 0asi 0asiss of time time)) wor5ing 2a"ital ma1 0e 2lassified as G
Permanent or fi6ed wor5ing 2a"ital*
G
Tem"orar1 or #aria0le wor5ing 2a"ital
Amount of >or5ing Ca"ital Tem"orar1 2a"ital
Permanent Ca"ital
Time
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PERMANENT OR FI=E/ WORKING CAPITAL
Permanent or fi6ed wor5ing 2a"ital is minimum amount whi2h is re@uired to ensu ensure re effe effe2t 2ti# i#ee util utiliH iHat atio ion n of fi6e fi6ed d fa2il fa2ilit itie iess and and for for main mainta tain inin ing g the the 2ir2ulation of 2urrent assets* E#er1 firm has to maintain a minimum le#el of raw materi material) al) wor5: wor5: in:"ro in:"ro2es 2ess) s) finish finished ed goods goods and 2ash 2ash 0alan2 0alan2e* e* This This minimum le#el of 2urrent assts is 2alled "ermanent or fi6ed wor5ing 2a"ital as this "art of wor5ing is "ermanentl1 0lo25ed in 2urrent assets* As the 0usiness grow the re@uirements of wor5ing 2a"ital also in2reases due to in2rease in 2urrent assets*
TEMPORAR- OR VARIA9LE VARIA9LE WORKING CAPITAL CAPITAL
Tem"orar1 or #aria0le wor5ing 2a"ital is the amount of wor5ing 2a"ital whi2 whi2h h is re@u re@uir ired ed to meet meet the the seas season onal al dema demand ndss and and some some s"e2 s"e2ia iall e6igen2ies* (aria0le wor5ing 2a"ital 2an further 0e 2lassified as seasonal wor5ing 2a"ital and s"e2ial wor5ing 2a"ital* The 2a"ital re@uired to meet the seasonal need of the enter"rise is 2alled seasonal wor5ing 2a"ital* !"e2ial wor5ing 2a"ital is that "art of wor5ing 2a"ital whi2h is re@uired to meet s"e2ial e6igen2ies su2h as laun2hing of e6tensi#e mar5eting for 2ondu2ting resear2h) et2* Tem"orar1 wor5ing 2a"ital differs from "ermanent wor5ing 2a"ital in the sense that is re@uired for short "eriods and 2annot 0e "ermanentl1 em"lo1ed gainfull1 in the 0usiness*
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IMPORTANCE OR A/VANTAGE OF A/E>ATE WORKING CAPITAL
!O4(ENC$ OF T'E B!INE!!
Ade@ua Ade@uate te wor5in wor5ing g 2a"ita 2a"itall hel"s hel"s in mainta maintaini ining ng the sol#en sol#en21 21 of the 0usiness 01 "ro#iding uninterru"ted of "rodu2tion* "rodu2tion*
oodwill
!uffi2ient amount of wor5ing 2a"ital ena0les a firm to ma5e "rom"t "a1ments and ma5es and maintain maintain the goodwill*
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Eas1 loans
Ade@uate wor5ing 2a"ital leads to high sol#en21 and 2redit standing 2an arrange loans from 0an5s and other on eas1 and fa#ora0le terms*
Cash Dis2ounts
Ade@uate wor5ing 2a"ital also ena0les a 2on2ern to a#ail 2ash dis2ounts on the "ur2hases and hen2e redu2es 2ost*
Regular !u""l1 of Raw Material
!uffi2ient wor5ing 2a"ital ensures regular su""l1 of raw material and 2ontinuous "rodu2tion*
Regu Regula larr Pa1m Pa1men entt Of !ala !alarie ries) s) >ages ages And And Othe Otherr Da1 Da1 TO Da1 Da1 Commitments
It leads to the satisfa2tion of the em"lo1ees and raises the morale of its em"lo1 em"lo1ees ees)) in2rea in2reases ses their their effi2 effi2ien ien21 21)) redu2e redu2ess wastag wastagee and 2osts 2osts and enhan2es "rodu2tion and "rofits*
A0ilit1 to Fa2e Crises
A 2on2ern 2an fa2e the situation during the de"ression*
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FACTORS
/ETERMINING
T!E
WORKING
CAPITAL
RE>IREMENTS
%* NATRE NATRE OF B!INE!! B!INE !! The The re@u re@uir irem emen ents ts of wor5 wor5in ing g is #er1 #er1 limi limite ted d in "u0l "u0li2 i2 util utilit it1 1 underta5ings su2h as ele2tri2it1) water su""l1 and railwa1s 0e2ause the1 offer 2ash sale onl1 and su""l1 ser#i2es not "rodu2ts) and no funds are tied u" in in#entories and re2ei#a0les* On the other hand the trading and finan2ial firms re@uires less in#estment in fi6ed assets 0ut ha#e ha#e to in#e in#est st lar large amt* amt* of wor5 wor5in ing g 2a"i 2a"ita tall alon along g with with fi6e fi6ed d in#estments* &* !IE OF T'E B!INE!! reater the siHe of the 0usiness) greater is the re@uirement of wor5ing 2a"ital* -* PRODCTION PRODCTI ON PO4IC$ If the "oli21 is to 5ee" "rodu2tion stead1 01 a22umulating in#entories it will re@uire higher wor5ing 2a"ital* ;* 4ENT' OF PRDCTION PRDCTION C$C4E C$C4E The longer the manufa2turing time the raw material and other su""lies ha#e ha#e to 0e 2arri 2arried ed for for a long longer er in the the "ro2 "ro2es esss with with "rog "rogre ress ssi# i#ee in2r in2rem emen entt of la0o la0orr and and ser# ser#i2 i2ee 2ost 2ostss 0efo 0efore re the the fina finall "rod "rodu2 u2tt is o0tained* !o wor5ing 2a"ital is dire2tl1 "ro"ortional to the length of the manufa2turing "ro2ess*
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Surces 2 1r3in% ca$ital The 2om"an1 2an 2hoose to finan2e its 2urrent assets 01 %* 4ong term sour2es &* !hort term sour2es -* A 2om0ination of them* Ln% ter4 surces surces 2 $er4anen $er4anentt 1r3in% 1r3in% ca$ital include include e@uit1 and "referen2e shares) retained earning) de0entures and other long term de0ts from "u0li2 de"osits and finan2ial institution* The long term wor5ing 2a"ital needs should meet through long term means of finan2ing* Finan2ing through long term means "ro#ides sta0ilit1) redu2es ris5 or "a1ment and in2reases li@uidit1 of the 0usiness 2on2ern* (arious t1"es of long term sour2es of wor5ing 2a"ital are summariHed as follow '. Issue 2 s#ares:
It is the the "rim "rimar ar1 1 and and most most im"o im"ort rtan antt sour2 sour2es es of regul regular ar or "erma "ermane nent nt wor5ing 2a"ital* Issuing e@uit1 shares as it does not 2reate and 0urden on the in2ome of the 2on2ern* Nor the 2on2ern is o0liged to refund 2a"ital should "refera0l1 raise "ermanent wor5ing 2a"ital* ?* Retained earnin%s:
Retain Retain earnin earning g a22umu a22umulat lated ed "rofit "rofitss are a "erman "ermanent ent sour2e sour2ess of regula regular r wor5ing 2a"ital* It is regular and 2hea"est* It 2reates not 2harge on future "rofits of the enter"rises* ** Issue 2 de@entures: de@entures:
It 2rates a fi6ed 2harge on future earnings of the 2om"an1* Com"an1 is o0liged to "a1 interest* Management should ma5e wise 2hoi2e in "ro2uring funds 01 issue of de0entures*
S#rt ter4 surces 2 te4$rar8 1r3in% ca$ital
Tem"orar1 wor5ing 2a"ital is re@uired to meet the da1 to da1 0usiness e6"enditures* The #aria0le wor5ing 2a"ital would finan2e from short term
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sour2es of funds* And onl1 the "eriod needed* It has the 0enefits of) low 2ost and esta0lishes 2loser relationshi"s with 0an5er* !ome sour2es of tem"orar1 wor5ing 2a"ital are gi#en 0elow '. C44ercial @an3:
A 2omm 2ommer er2i 2ial al 0an5 0an5 2ons 2onsti titu tute tess sign signif ifi2 i2an antt sour sour2e 2ess for for shor shortt term term or tem"orar1 wor5ing 2a"ital* This will 0e in the form of short term loans) 2ash 2redit) and o#erdraft and though dis2ounting the 0ills of e62hanges*
?* Pu@lic de$sits:
Most of the 2om"anies in re2ent 1ears de"end on this sour2e to meet their short short term term wor5i wor5ing ng 2a"ita 2a"itall re@uir re@uireme ements nts rangin ranging g fro si6 month month to three three 1ears* ** Varius credits:
Trade 2redit) 0usiness 2redit "a"ers and 2ustomer 2redit are other sour2es of short term wor5ing 2a"ital* Credit from su""liers) ad#an2es from 2ustomers) 0ills of e62hanges) et2 hel"s hel"s to raise tem"orar1 wor5ing wor5ing 2a"ital * Reser0es and t#er 2unds:
(arious funds of the 2om"an1 li5e de"re2iation fund* Pro#ision for ta6 and other "ro#isions 5e"t with the 2om"an1 2an 0e used as tem"orar1 wor5ing 2a"ital*The 2om"an1 should meet its wor5ing 2a"ital needs through 0oth long term and short term funds* It will 0e a""ro"riate to meet at least &7- of the "ermanent wor5ing 2a"ital e@ui"ments form long term sour2es) whereas the #aria0les wor5ing 2a"ital should 0e finan2ed from short term sour2es* The wor5ing 2a"ital finan2ing mi6 should 0e designed in su2h a wa1 that the o#erall 2ost of wor5ing 2a"ital is the lowest) and the funds are a#aila0le on time and for the "eriod the1 are reall1 re@uired*
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SORCES OF A//ITIONAL WORKING CAPITAL CAPITAL
!our2es of additional wor5ing 2a"ital in2lude the following: %* E6isting 2ash reser#es &* Profits 8when 1ou se2ure it as 2ash9 -* Pa1a0les 82redit from su""liers9 ;* New e@uit1 or loans from shareholder =* Ban5 o#erdrafts line of 2redit 2r edit .* 4ong term loans If we ha#e insuffi2ient wor5ing 2a"ital and tr1 to in2rease sales) we 2an easil1 o#er stret2h the finan2ial resour2es of the 0usiness* This is 2alled o#ertrading* Earl1 warning signs in2lude %* Pressure on e6isting 2ash &* E62e"tional 2ash generating a2ti#ities* Offering high dis2ounts for 2lear 2ash "a1ment -* Ban5 o#erdraft e62eeds authoriHed limit ;* !ee5ing greater o#erdrafts or lines of 2redit =* Part "a1ing su""liers or there 2reditor* 2reditor* .* Management "re o22u"ation with sur#i#ing rather than managing* /i22erent As$ects 2 Wr3in% Ca$ital Mana%e4ent
GGManagement of In#entor1 GGManagement of Re2ei#a0les7De0tors Re2ei#a0les7De0tors GGManagement of Cash GGManagement of Pa1a0les7Creditors
MANAGEMENT OF INVENTOR-
In#entories 2onstitute the most signifi2ant "art of 2urrent assets of a large ma3orit1 of 2om"anies* On an a#erage) in#entories are a""ro6imatel1 ., of 2urrent assets* Be2ause of large siHe) it re@uires a 2onsidera0le amount of fund* The in#entor1 means and in2ludes the goods and ser#i2es 0eing sold 01 the firm and the raw material or other 2om"onents 0eing used in the manufa2turing of su2h goods and ser#i2es*
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Nature 2 In0entr8:
The 2ommon t1"e of in#entories for most of the 0usiness firms ma1 0e 2lassified as raw:material) wor5:in:"rogress) finished goods*
GGRa1 4aterial: it is 0asi2 in"uts that are 2on#erted into finished "rodu2ts through the manufa2turing "ro2ess* Raw materials in#entories are those units whi2h ha#e 0een "ur2hased and stored for future "rodu2tions*
GGWr3or5:in:"ro2ess is semi:manufa2tured "rodu2ts* The1 re"resent "rodu2ts that need more wor5 0efore them 0e2ome finished "rodu2ts for for sale*
GGFinis#ed %ds: These are 2om"letel1 manufa2tured "rodu2ts whi2h are read1 for sale* !to25s of raw materials and wor5:in:"ro2ess fa2ilitate "rodu2tion) while sto25 of finished goods is re@uired for smooth mar5eting o"erations* Thus in#entories ser#e as a lin5 lin5 0etwee 0etween n the "rodu2 "rodu2tio tion n and 2onsum 2onsum"ti "tion on of goods* goods*The The le#els of three 5inds of in#entories for a firm de"end on the nature of 0usiness* A manufa2turing firm will ha#e su0stantiall1 high le#els of all the three three 5inds of in#entori in#entories* es* >hile retail or wholesale firm will ha#e a #er1 high le#el of finished goods in#e in#en ntori toriees and and no raw raw mate materi rial al and wor5: or5:iin:"ro :"ro2e 2ess ss in#entories*
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!o o"erating 212le 2an 0e 5nown as following:
Raw Material
>or5 in Progress
Cash ash from
Colle olle22tion tion
!ales Finished oods
Credit !ales
Cash !ales
&,
Need t #ld in0entries
Mainta Maintaini ining ng in#ent in#entori ories es in#ol# in#ol#es es tr1ing tr1ing u" of the 2om"an 2om"an1? 1?ss funds funds and in2urren2e of storage and holding 2osts* There are three general moti#es for holding in#entories Transactins Mti0e: IT em"hasiHes the need to maintain in#entories to fa2ilitate smooth "rodu2tion and sales o"eration* Precautinar8 Precautinar8 Mti0e: It ne2essitates holding of in#entories to guard against the ris5 of un"redi2ta0le 2hanges in demand and su""l1 for2es and other fa2tors* S$eculati0e Mti0e:
It influen2es the de2ision to in2rease or redu2e in#entor1 le#els to ta5e ad#antage of "ri2 ri2e flu2tuations*
Mana%e4ent 2 Recei0a@lesB/e@trs Recei0a@lesB/e@trs
The Re2ei#a0les 8in2luding the de0tors and the 0ills9 2onstitute a signifi2ant "ortion of the wor5ing 2a"ital* The re2ei#a0les emerge whene#er goods are sold on 2redit and "a1ments are deferred 01 2ustomers* A "romise is made 01 the 2ustomer to "a1 2ash within a s"e2ified "eriod* The 2ustomers from whom re2ei#a0le or 0oo5 de0ts ha#e to 0e 2olle2ted in the future are 2alled trade de@trs and re"resents the firm?s 2laim or assets* Thus) re2ei#a0le is s t1"e of loan e6tended 01 the seller to the 0u1er to fa2ilitate the "ur2hase "ro2ess* Recei0a@le Mana%e4ent ma1 0e defined as 2olle2tion of ste"s and "ro2edure re@uired to "ro"erl1 weight the 2osts and 0enefits atta2hed with the 2redit "oli21* The Re2ei#a0le Management 2onsist of mat2hing the 2ost of in2reasing sales 8"arti2ularl1 2redit sales9 with the 0enefits arising out of in2reased sales with the o03e2ti#e of ma6imiHing the return on in#estment of the firm*
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Nature
The term 2redit "oli21 is used to refer to the 2om0ination of three de2ision #aria0les '. Credit standards: It is the 2riteria to de2ide the t1"e of 2ustomers to whom goods 2ould 0e sold on 2redit* If a firm has more slow "a1ing 2ustomers) its in#estment in a22ounts re2ei#a0le will in2rease* The firm will also 0e e6"osed to higher ris5 of default*
?. Credit ter4s:
It s"e2ifies duration of 2redit and terms of "a1ment 01 Customer In#estment in a22ounts re2ei#a0le will 0e high if 2ustomers are allowed e6tended time "eriod for ma5ing "a1ments*
*. Cllectin e22rts: It determine the a2tual 2olle2tion "eriod* The lower the 2olle2tion "eriod) the lower the in#estment in a22ounts re2ei#a0le and #i2e #ersa*
Mana%e4ent 2 Cas#
Cash Cash manage managemen mentt refers refers to manage managemen mentt of 2ash 2ash 0alan2 0alan2ee and the 0an5 0an5 0alan2e and also in2ludes the short terms de"osits* Cash is the im"ortant 2urrent asset for the o"erations of the 0usiness* Cash is the 0asi2 in"ut needed to 5ee" the 0usiness running on a 2ontinuous 0asis* It is also the ultimate out"ut e6"e2ted to 0e realiHed 01 selling the ser#i2e or "rodu2t manufa manufa2tu 2tured red 01 the firm* firm* The term term 2ash 2ash in2lud in2ludes es 2oins) 2oins) 2urren 2urren21 21)) and 2he@ue held 01 the firm and 0alan2e in the 0an5 a22ounts* Factrs 2 Cas# Mana%e4ent:
Cash management is 2on2erned with the managing of %* Cash flows into and out of the firm &* Cash flows within the firm and -* Cash 0alan2e held 01 the firm at a "oint of time 01 finan2ing defi2it or
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in#esting in#esting sur"lus sur"lus 2ash* !ales generate generate 2ash whi2h whi2h has to 0e dis0ursed dis0ursed out* The The sur" sur"lu luss 2ash 2ash has has to 0e in#e in#est sted ed whil whilee defi defi2i 2itt has has to 0orr 0orrow ow** Cash Cash management see5s to a22om"lish this 212le at a minimum 2ost and it also see5s to a2hie#e li@uidit1 and 2ontrol* Mti0es 2 #ldin% cas#
A distinguishing feature of 2ash as an asset is that it does not earn an1 su0stantial return for the 0usiness* E#en though firm hold 2ash for following moti#es Transactin 4ti0e Precautinar8 4ti0e S$eculati0e 4ti0es C4$ensatr8 4ti0e
Transacti rans actin n 4ti0e 4ti 0e This refers to the holding of 2ash to meet routine 2ash re@uirement to finan2e* The transa2tions) whi2h a firm 2arries on in the ordinar1 2ourse of 0usiness* '.Precautinar8 4ti0e: This im"lies the needs to hold 2ash to meet un"redi2ta0le 2ontingen2ies su2h as stri5e) shar" in2rease in raw materials materials "ri2es* "ri2es* If a firm 2an 0orrow 0orrow at short noti2e to "a1 them unforeseen 2ontingen21) it will need to maintain relati#el1 small 0alan2es and #i2e:#ersa*
&* S$eculati0e 4ti0es It refers to the desire of the firm to ta5e ad#antage of o""ortunities whi2h "resent themsel#es at une6"e2ted mo#ements and whi2h are t1"i2all1 outside the normal 2ourse of 0usiness* -* C4$ensatr8 4ti0e: Ban5 "ro#ides 2ertain ser#i2es to their 2lient free of 2ost* The1 therefore) usuall1 re@uire 2lient to 5ee" minimum 2ash 0alan2e with them to earn interest and thus 2om"ensate them for the free ser#i2e so "ro#ided*
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Mana%e4ent 2 Pa8a@lesBCreditrs
Credito Credi tors rs are a #i #ita tall "a "art rt of ef effe fe2t 2ti# i#ee 2a 2ash sh ma mana nage geme ment nt an and d sh shou ould ld 0e managed 2arefull1 to enhan2e the 2ash "osition* Pur2hasing initiates 2ash outflo out flows ws and an o#e o#er: r:Hea Healou louss "ur "ur2ha 2hasin sing g fun fun2ti 2tion on 2an 2re 2reate ate li@ li@uid uidit1 it1 "ro0lems* Consider the Following GG>ho authoriHes "ur2hasing in our 2om"an1:is it tightl1 managed or s"read among a num0er of "eo"leK GGAre "ur2hase @uantities geared to demand fore2astsK GGDo we use order @uantities whi2h ta5e a22ount of sto25:holding and "ur2hasing 2ostsK GGDo we 5now the 2ost to the 2om"an1 of 2arr1ing sto25K GGDo we ha#e alternati#e sour2e of su""l1K GG'ow man1 of ours su""liers ha#e a returns "oli21K GGAre we in a "osition to "ass on 2ost in2reases @ui25l1 through "ri2e in2reaseK
MANAGEMENT OF WORKING CAPITAL
Management of wor5ing 2a"ital is 2on2erned with the "ro0lem that arises in attem"ting to manage the 2urrent assets) 2urrent lia0ilities* The The 0asi 0asi22 goal goal of wor5 wor5in ing g 2a"i 2a"ita tall mana manage geme ment nt is to mana manage ge the the 2urrent assets and 2urrent lia0ilities of a firm in su2h a wa1 that a satisfa2tor1 le#el of wor5ing 2a"ital is maintained) i*e* it is neither ade@uate nor e62essi#e as 0oth the situations are 0ad for an1 firm* There should 0e no shortage of funds and also no wor5ing 2a"ital should 0e ideal* >ORLIN CAPITA4 MANAEMENT PO4ICE! of a firm has a great on its "ro0a0ilit1) li@uidit1 and stru2tural health of the the orga organi niHa Hati tion on** !o wor5 wor5in ing g 2a"i 2a"ita tall mana manage geme ment nt is thre threee dimensional in nature as
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%*
It 2on2e 2on2erne rned d with with the formu formulat lation ion of "oli2 "oli2ies ies with with rega regard rd to "rofita0ilit1) "rofita0ilit1) li@uidit1 and ris5* ris5*
&*
It is 2on2erned with the de2ision a0out the 2om"osition and le#el of 2urrent assets*
-*
It is 2on2erned with the de2ision a0out the 2om"osition and le#el of 2urrent lia0ilities*
WORKING CAPITAL ANAL-SIS
As we 5now wor5ing 2a"ital is the life 0lood and the 2entre of a 0usiness* Ade@uate amount of wor5ing 2a"ital is #er1 mu2h essential for the smooth running of the 0usiness* And the most im"ortant "art is the the effi effi2i 2ien entt mana manage geme ment nt of wor5 wor5in ing g 2a"i 2a"ita tall in righ rightt time time** The The li@uidit1 "osition of the firm is totall1 effe2ted 01 the management of wor5ing 2a"ital* !o) a stud1 of 2hanges in the uses and sour2es of wor5ing 2a"ital is ne2essar1 to e#aluate the effi2ien21 with whi2h the wor5ing 2a"ital is em"lo1ed in a 0usiness* This in#ol#es the need of wor5ing 2a"ital anal1sis* The anal1sis of wor5ing 2a"ital 2an 0e 2ondu2ted through a num0er of de#i2es) su2h as %*
Ratio anal1sis*
&*
Fund flow anal1sis*
-*
Budgeting*
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MET!O/S MET! O/S OF WORKING CAPIT CAPI TAL ANAL-SIS ANAL-SIS
There are so man1 methods for anal1sis of finan2ial statements 0ut RI4 4TD 4TD used the following te2hni@ues:
Com"arati#e siHe statements
Trend anal1sis
Cash flow statement
Ratio anal1sis
A detail des2ri"tion of these methods is as follows:
COMPARATIVE SIE STATEMENTS:&
>hen two or more than two 1ears figures are 2om"ared to ea2h other than we 2all 2alled ed 2om" 2om"ar arat ati# i#ee siHe siHe stat statem emen ents ts in orde orderr to esti estima mate te the the futu future re "rogress of the 0usiness) it is ne2essar1 to loo5 the "ast "erforman2e of the 2om"an1* These statements show the a0solute figures and also show the 2hange from one 1ear to another*
TREN/ ANAL AN AL-SIS:& -SIS:&
To anal1He man1 1ears finan2ial statements RI4 4TD uses this method* This indi2ates the dire2tion on mo#ement o#er the long time and hel" in the finan2ial statements*
Prcedure 2r calculatin% trends:&
%* Pre#ious Pre#ious 1ear 1ear is ta5en ta5en as a 0ase 1ear* 1ear* &* Figures Figures of the 0ase 1ear are ta5en ta5en %,,* -* Trend Trend are 2al2u 2al2ulated lated in in relation relation to to 0ase 1ear 1ear** &.
CAS! FLOW STATEMENT:&
Cash flow statements are the statements of 2hanges in the finan2ial "osition "re"ared on the 0asis of funds defined in 2ash or 2ash e@ui#alents* In short 2ash flow statement summaries the 2ash inflows and outflows of the firm during a "arti2ular "eriod of time*
9ene2its 2r t#e RIL LT/:&
To "re"are the 2ash 0udget*
To 2om"are the 2ash 0udgets *
To show the "osition of the 2ash and 2ash e@ui#alents*
RATIO ANAL-SIS:&
Ratio anal1sis is the "ro2ess of the determining and "resenting the relationshi" of the items and grou" of items in the statements*
9ene2its 2 rati anal8sis t RIL LT/:&
'. 'el"ful in anal1sis of finan2ial statements* ?. 'el"ful in 2om"arati#e stud1* *. 'el"ful in lo2ating the wea5 s"ots of the RIL LT/. . 'el"ful in fore2asting* D. Estimate a0out the trend of the 0usiness* +. Fi6ation of ideal standards* ,. Effe2ti#e 2ontrol* (. !tud1 of finan2ial soundness*
&/
T8$es 2 rati:&
Liquidity
ratio: The1 indi2ate the firms? a0ilit1 to meet its 2urrent
o0ligation out of 2urrent resour2es*
Current rati:
Current assets B Current lia0ilities
>uic3 rati::
4i@uid assets 7 Current lia0ilities
4i@uid assets Current assets !to25 :Pre"aid e6"enses
Leverage or Capital structure structure ratio: This ratio dis2loses the firms
a0ilit1 to meet the interest 2osts regularl1 and long term sol#en21 of the firm*
funds /e@t euit8 rati:& 4ong term loans 7 !hareholders funds or net >orth
/e@t t ttal 2und rati:& 4ong terms loans7 share holder
funds long term loan
Pr$rietar8 rati:& !hareholders fund7 shareholders
fundlong term loan
Activity
ratio or Turnover Turnover ratio:- The1 indi2ate the ra"idit1 with
whi2h the resour2es a#aila0le to the 2on2ern are 0eing used to "rodu2e sales*
Stc3 turn0er rati:& Cost of good sold7A#erage sto25
8Cost of good sold Net sales7 ross "rofit) A#erage sto25O"ening sto252losing sto257&9
&+
/e@trs turn0er rati:rati:- Net 2redit sales7 A#erage de0tors
A#erage A#erage B7R
A0era%e cllectin $erid:& De0torsB7R 7Credit sales "er
8Credit sales "er da1Net 2redit sales of the 1ear7-.=9
Creditrs Turn0er Rati:& Net 2redit "ur2hases7 A#erage
Creditors Creditor s A#erage B7P
A0era%e 0era%e Pa84e Pa84ent nt Perid Perid : Cred Credit itor orss B7P7 B7P7 Cred Credit it
"ur2hase "er da1* da1*
Fied Assets Turn0er rati:& Cost of goods sold7Net fi6ed
Assets 8Net Fi6ed Assets Fi6ed Assets – de"re2iation9 de"re2iation9
Wr3in% Ca$ital Turn0er Rati:& Cost of goods sold7
>or5ing Ca"ital 8>or5ing 8> or5ing 2a"ital 2urrent assets 2urrent lia0ilit19
Profit Profitabi abilit lityy Ratios Ratios or Income Income ratios:ratios:- The main o03e2ti#e of
e#er1 0usiness 0usiness 2on2ern 2on2ern is to earn "rofits* A 0usiness 0usiness must 0e a0le to earn ade@uate "rofit in relation to the ris5 and 2a"ital in#ested in it*
&
Grss $r2it rati:& ross "rofit 7 Net !ales %,,
8Net sales !ales !ales return9
%,, Net $r2it Rati:& Net "rofit 7 Net sales %,, 8O"erating Net Profit o"erating net "rofit7 Net !ales %,, or o"erating Net "rofit gross "rofit o"erating e6"enses9
Cost of good goodss sold sold O"er O"erat atin ing g O$er O$ erat atin in% % Rati Rati :& Cost e6"enses7Net !ales %,,
8Cost of goods sold Net !ales ross "rofit) O"erating e6"e e6"ens nses es offi offi2e 2e < admi admini nist stra rati tion on e6"e e6"ens nses es !ell !ellin ing g < distri0utio distri0ution n e6"ens e6"enses es dis2ount dis2ount 0ad 0ad de0ts de0ts interes interestt
on
short term loans9
Earnin Earnin% % $er s#are s#are5E. 5E.P P.S.6 .S.6 :& Net Profit di#idend on
"referen2e share 7 No* of e@uit1 e@uit1 shares
Di#idend nd "aid "aid to e@uit1 e@uit1 /i0ide /i0idend nd $er s#are s#are 5/.P 5/.P.S.6:& .S.6:& Di#ide share 'olders 7 No* of e@uit1 shares %,,*
/i0idend Pa8ut rati5/.P.6 :& D*P*!* D*P*!* 7 E*P E* P*!* %,,
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COMPANY PROFILE
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"Growth has no limit at Reliance. I keep revising my vision. Only when you can dream it, you can do it."
Dhirubhai H. mbani
Founder Chairman Reliance Group December 28, 1932 - July 6, 2002 he he Reli Relian ance ce Grou Group, p, !oun !ounde ded d by Dhiru hirubh bhai ai "# $mba $mbani ni %1932-2002&, i' (ndia)' lar*e'+ pria+e 'ec+or en+erpri'e, i+h bu'ine''e' in +he ener*y and ma+erial' ma+erial' alue chain# Group)' annu annual al ree reenu nue' e' are are in e.ce e.ce'' '' o! / / bill billio ion# n# he he !la*'hip company, Reliance (ndu'+rie' imi+ed, imi+ed, i' a For+une Glob Global al 400 400 comp compan any y and and i' +he lar* lar*e' e'++ pri pria+ a+e e 'ec 'ec+or +or company in (ndia#
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Reli Relian an2e 2e en3o en3o1s 1s glo0 glo0al al lead leaders ershi hi" " in its its 0usi 0usine ness sses es)) 0ein 0eing g the the larg larges estt "ol1ester 1arn and fi0re "rodu2er in the world and among the to" fi#e to ten "rodu2ers in the world in ma3or "etro2hemi2al "rodu2ts* "rodu2ts* Ma3or rou" Com"anies are Relian2e Industries 4imited 8in2luding main su0sid su0sidiar iar1 1 Relian Relian2e 2e Retail Retail 4imite 4imited9 d9 and Relian2e Industrial Infrastru2ture 4imited
A9OT TELECOM IN/STR-
Wrld telec4 industr8 is an u"rising industr1) "ro2eeding towards a goal
of a2hie#ing two third of the worlds tele2om 2onne2tions* O#er the "ast few 1ear 1e arss in info forma rmati tion on an and d 2o 2ommu mmuni ni2a 2ati tion onss te te2h 2hno nolo log1 g1 ha hass 2h 2han ange ged d in a dramati2 manner and as a result of that world tele2om industr1 is going to 0e a 0ooming industr1* !u0stantial e2onomi2 growth and mounting "o"ulation ena0le the ra"id growth of this industr1* The world tele2ommuni2ations mar5et is e6"e2ted to rise at an %% "er2ent 2om"ound annual growth rate at the end of 1ear &,%,* The leading tele2om 2om"anies li5e AT
--
(eriHo eriHon) n) !BC Commu Communi2at ni2ations ions)) Bell !outh !outh)) Qwes Qwestt Commun Communi2ati i2ations ons are tr1ing to ta5e the ad#antage of this growth* These 2om"anies are wor5ing on tele2ommun tele2 ommuni2ati i2ation on field fieldss li5e 0roa 0road0and d0and te2hn te2hnologi ologies) es) EDE8 EDE8Enhan Enhan2ed 2ed Data rates for lo0al E#olution9 te2hnologies) 4AN:>AN 4AN:>AN inter networ5ing) o"ti2al networ5ing) #oi2e o#er Internet "roto2ol) wireless data ser#i2e et2* E2onomi2al as"e2t of tele2ommuni2ation industr1 >orld tele2om industr1 is ta5ing a 2ru2ial "art of world e2onom1* e2onom1* The total re#enue earned from this industr1 is - "er2ent of the gross world "rodu2ts and is aiming at attaining more re#enues* One statisti2al re"ort re#eals that a""ro6imatel1 %.* of the world "o"ulation has a22ess to the Internet* Present mar5et s2enario of world tele2om industr1 O#er the last 2ou"le of 1ears) world tele2ommuni2ation industr1 has 0een 2onsolidating 01 allowing "ri#ate organiHations the o""ortunities to run their 0usinesses with this indu in dust str1 r1** Th Thee o o#e #ern rnme ment nt mo mono no"o "oli lies es are no now w 0e 0ein ing g "r "ri# i#at atiH iHed ed an and d 2onse@uentl1 2om"etition is de#elo"ing* Among all) the domesti2 and small 0usiness mar5ets are the hardest*
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IN/IAN OVERVIEW
Toda1 oda1 the the Indi Indian an tele tele2o 2ommu mmuni ni2a 2ati tion onss netw networ or5 5 with with o#er o#er -/= -/= Mill Millio ion n su0s2ri0ers is se2ond largest networ5 in the world after China* India is also the fastest growing tele2om mar5et in the world with an addition of : %, million monthl1 su0s2ri0ers* The teledensit1 of the Countr1 has in2reased from %+ in &,,. to -- in De2em0er &,,+) showing a stu"endous annual grow growth th of a0ou a0outt =,) =,) one one of the the high highes estt in an1 an1 se2t se2tor or of the the Indi Indian an E2onom1* The De"artment of Tele2ommuni2ations has 0een a0le to "ro#ide state of the art world:2lass infrastru2ture at glo0all1 2om"etiti#e tariffs and redu2e the digital di#ide 01 e6tending 2onne2ti#it1 to the un2onne2ted areas* India has emerged as a ma3or 0ase for the tele2om industr1 worldwide* Thus India Indian n tele tele2o 2om m se2t se2tor or has has 2ome 2ome a long long wa1 wa1 in a2hi a2hie# e#in ing g its its drea dream m of "ro#iding afforda0le and effe2ti#e 2ommuni2ation fa2ilities to Indian 2itiHens* As a result 2ommon man toda1 has a22ess to this most needed fa2ilit1*
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A9OT RELIANCE IN/STRIES LIMITE/ MISSION VISION
Continuousl1 inno#ate to remain Partners in human "rogress 01 'arnessing s2ien2e < te2hnolog1 in the "etro2hemi2als domain
OR MISSION
Be a glo0all1 "referred Business asso2iate with res"onsi0le Con2ern for e2olog1) so2iet1) and sta5e holder?s #alue*
VALES >ALIT- POLICOR VALES ALE S
Integrit1) Integrit1) Res"e2t for Peo"le) nit1 of Pur"ose) Outside:in Fo2us) Agilit1 and Inno#ation*
>ALIT- POLIC-
Bare 2ommitted to meet 2ustomers? re@uirements re@uirements through 2ontinual im"ro#ement Of our @ualit1 management s1stems* >e >e shall sustain organiHational e62ellen2e through #isionar1 leadershi" and inno#ati#e efforts*
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RIL MILESTONE
-EAR %. %/, %/,
EVENTS IPC4 was in in2or"orated under 2o 2om"an1 a2 a2t* Cons Constr tru2 u2ti tion on of our our firs firstt Petr Petro2 o2he hemi mi2a 2als ls 2om" 2om"le le6 6 2omm 2ommen en2e 2ed d at
%/%& %& %& &
(adodara) u3arat* Commen2ed 2o 2omme mmer2i r2ial o" o"erat ration at at (adodara* ra* Init Initia iall "u0 "u0li li22 of offeri fering ng and and lis listi ting ng on the the (adod adodar araa sto sto25 25 e62h e62han ange ge !e2o !e2ond nd Pet Petro2h ro2heemi2a mi2all Com Com"l "lee6 2om 2omme men2 n2ed ed at Nago Nagotthan hane)
%. % &,,, ,,, &,,& &,,; ,,;
Maharashtra Third Pe Petro2hemi2al Co Com"le6 2o 2omme mmen2ed at at a andhar andhar 2o 2om"le6 2o 2ommissioned* Com"l om"let etio ion n of the the se2 se2ond ond "hase hase of the andh andhar ar 2om" 2om"lle6 Relian2e too5 o#er IPC4* Amend mendme ment nt agre agreem emen entt 0et 0etw ween een the the go go#ern #ernme ment nt and and the the st strat rategi egi2
&,,= ,,=
"artner) "artner) Relian2e "etroleum limited) limited) a Relian2e grou" 2om"an1 2om"an1** o#er o#ern nment ment of Ind India ia with withd drew rew it its nom nomin inee ee dire2 ire2ttors fro from the the
&,,. &,,.
0oard of dire2tors of India "etro2hemi2als "etro2hemi2als 2o* ltd* Amal Amalga gama mati tion on of si6 si6 "ol1 "ol1es este terr 2om 2om"a "ani nies es i*e* i*e* A"ol A"ollo lo fi0r fi0res es ltd) ltd) Central India "lo1sters ltd) India "ol1fi0res ltd) Orissa "ol1fi0res ltd) Re2ron s1ntheti2s ltd and !il#assa industries P#t ltd with
&,,/ &,,+
IPC4* RI4 2om"lete a landmar5 mar5 a2@uisition of IPC IPC4* RI4 signed MO MO wi with A AI48IN 8INDIA9 IA9 4t 4td* to to e6 e6"lore o""ortunities of setting of "etro2hemi2al "lants*
!roducts #rands The Com"an1 e6"anded into te6tiles in %/=* !in2e its initial "u0li2 offering in %//) %//) the Com"an1 has e6"anded e6"anded ra"idl1 and integrated integrated 0a25wards 0a25wards into other industr1 se2tors) most nota0l1 the "rodu2tion of "etro2hemi2als and the refining of 2rude oil* -/
The The Com" Com"an an1 1 from from time time to time time see5 see5ss to furt furthe herr di#e di#ersi rsif1 f1 into into othe other r industries* The Com"an1 now has o"erations that s"an from the e6"loration and "rodu2tion of oil and gas to the manufa2ture of "etroleum "rodu2ts) "ol1ester "rodu2ts) "ol1ester intermediates) "lasti2s) "ol1mer intermediates) 2hemi2als and s1ntheti2 te6tiles and fa0ri2s* The Com"an1s ma3or "rodu2ts and 0rands) from oil and gas to te6tiles are tightl1 integrated and 0enefit from s1nergies a2ross the Com"an1* Central to the Com"an1s Com"an1s o"erations o"erations is its #erti2al #erti2al 0a25ward integratio integration n strateg1 strateg1 raw materials su2h as PTA) ME) eth1lene) "ro"1lene and normal "araffin that were "re#iousl1 im"orted at a higher 2ost and su03e2t to im"ort duties are now sour2ed from within the Com"an1* This has had a "ositi#e effe2t on the Com" Com"an an1 1ss o"er o"erat atin ing g mar margins gins and and inte intere rest st 2ost 2ostss and and de2r de2rea ease sed d the the Com"an1s e6"osure to the 212li2alit1 of mar5ets and raw material "ri2es* The Com"an1 0elie#es that this strateg1 is also im"ortant in maintaining a dome domest sti2 i2 mar5 mar5et et lead leader ersh shi" i" "osi "ositi tion on in its its ma3o ma3orr "rod "rodu2 u2tt line liness and and in "ro#iding a 2om"etiti#e 2om"etiti#e ad#antage* The Com"an1s o"erations 2an 0e 2lassified into four segments namel1
Petroleum Refining and Mar5eting 0usiness
Petro2hemi2als 0usiness
Oil and as E6"loration < Produ2tion 0usiness
Others
The Com"an1 has the largest refining 2a"a2it1 at an1 single lo2ation* The Com"an1 is
4argest "rodu2er of Pol1ester Fi0re and $arn $arn
;th largest "rodu2er of Para61lene 8PS9 -+
=th largest "rodu2er of Pol1"ro"1lene 8PP9
/th largest "rodu2er of Purified Tere"hthali2 A2id 8PTA9 and Mono Eth1lene l12ol 8ME9
$anu%acturing &acilities Relian2e Relian2e Industries Industries 4imited 4imited o"erates o"erates world:2lass world:2lass manufa2turi manufa2turing ng fa2ilities fa2ilities a2ross a2ross the 2ountr 2ountr1 1 at Allaha Allaha0ad 0ad)) Bara0a Bara0an5i n5i)) Dahe3) Dahe3) 'aHira 'aHira)) 'oshia 'oshiar"u r"urr) Jamnagar) Nagothane) Nag"ur) Naroda) Patalganga) !il#assa and (adodara* Allaha0ad Manufa2turing Di#ision is lo2ated in Allaha0ad) ttar Pradesh* It is e@ui"" e@ui""ed ed with with 0at2h 0at2h "ol1me "ol1meriH riHati ation on and 2ontin 2ontinuou uouss "ol1me "ol1meriH riHati ation on fa2ilities* Bara0an5i Manufa2turing Di#ision is lo2ated near 4u25now) ttar Pradesh* It manufa2tures Bla25 Fi0re* Dahe3 Manufa2turing Di#ision is lo2ated near Bharu2h) u3arat* It 2om"rises of an ethane 7 "ro"ane re2o#er1 unit) a gas 2ra25er) a 2austi2 2hlorine "lant and and ; down downst stre ream am "lan "lantts) whi2h hi2h man manufa2 ufa2tture "ol1m ol1mer erss and and fi0 fi0re intermediates* 'oshia 'oshiar"u r"urr Manufa Manufa2tu 2turin ring g Di#isi Di#ision on is lo2ate lo2ated d in 'oshia 'oshiar"u r"urr) Pun3a0 Pun3a0** It manufa2tures a wide range of P!F) PFF) PO$ and "ol1ester 2hi"s* 'aHira Manufa2turing Di#ision is lo2ated near !urat) u3arat* It 2om"rises of a Na"tha 2ra25er feeding downstream fi0re intermediates) "lasti2s and "ol1ester "lants* Jamnagar Manufa2turing Di#ision is lo2ated near Jamnagar* It 2om"rises of a "etroleum refineries and asso2iated "etro2hemi2al "lants* The refineries
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are e@ui""ed to refine #arious t1"es of 2rude oil 8sour 2rude) sweet 2rude or a mi6ture of 0oth9 and manufa2tures #arious grades of fuel from motor gaso gasoli line ne to A#iat #iatio ion n Tur0in ur0inee Fuel Fuel 8ATF9 8ATF9** The The "etr "etro2 o2he hemi mi2a 2als ls "lan "lants ts "rodu2es "lasti2s and fi0re intermediates* intermediates* Nagothane Manufa2turing Di#ision is lo2ated in Raigad) Maharashtra* It 2om"rises of an ethane and "ro"ane gas 2ra25er and fi#e downstream "lants for the manufa2ture of "ol1mers) fi0re intermediates and 2hemi2als* Nag"ur Manufa2turing Di#ision is lo2ated in Nag"ur) Nag"ur) Maharashtra* It manufa manufa2tu 2tures res "ol1es "ol1ester ter filame filament nt 1arn) 1arn) do"e:d do"e:d1ed 1ed s"e2ia s"e2ialt1 lt1 "rodu2 "rodu2ts ts of different ranges) full1 drawn 1arn and "ol1ester 2hi"s* Naroda Manufa2turing Di#ision is lo2ated near Ahmeda0ad) u3arat) is RI4? RI4?s firs firstt manu manufa fa2t 2tur urin ing g fa2i fa2ili lit1 t1** This This s1nt s1nthe heti ti22 te6t te6til iles es and and fa0ri2 fa0ri2ss manufa2turing fa2ilit1 manufa2tures and mar5ets wo#en and 5nitted fa0ri2s for home te6tiles) te6tiles) s1ntheti2 s1ntheti2 and worsted worsted suiting and shirting) shirting) read1 to wear garments and automoti#e fa0ri2s* Patalganga Manufa2turing Di#ision is lo2ated near Mum0ai) Maharashtra* It 2om" 2om"ri rise sess of "ol1 "ol1es este terr) fi0r fi0ree inte interme rmedi diat ates es and and line linear ar al5l al5l1l 1l 0enH 0enHen enee manufa2turing "lants* !il#assa Manufa2turing Di#ision is lo2ated in the nion Territor1 of Dadra and Nagar 'a#eli* It manufa2tures a wide range of s"e2ialt1 "rodu2ts su2h as Re2ron Re2ron !tret2h !tret2h)) 4inen 4inen 4i5e) 4i5e) Melang Melange) e) Thi25: Thi25:n:t n:thin hin and Bi:shr Bi:shrin5 in5age age 1arns* (adodar adodaraa Manufa Manufa2tu 2turin ring g Di#isi Di#ision on is lo2ate lo2ated d in (adodar adodara) a) u3ara u3arat* t* It 2om" 2om"ri rise sess of a Na"th a"thaa 2ra2 2ra25 5er and %= dow downstr nstreeam "la "lants nts for for the the manufa2ture of "ol1mers) fi0res) fi0re intermediates and 2hemi2als* ;,
Ea2h of these 2om"le6es has world 2lass manufa2turing fa2ilities*
INOVA INOVATIONS TION S OF O F RIL
For those who stud1 inno#ati#e organiHations Relian2e Industries will 0e a shining e6am"le of how inno#ation is "ra2tised in almost e#er1thing that the1 do* 'ere are few things that set them a"art
"I4$ssi@le is an ins$irin% 1rd" : Nothing turns on the leadershi"
at Relian2e Industries than this magi2al word* Again to @uote the Jamnagar e6am"le) it was 2onsidered im"ossi0le to turn a 0arren land into a green0elt* Toda1 Toda1 mangoes grown in Jamnagar are sold in 'arrods 4ondon*
"!ands n t#in3in% #ands 22 eecutin." : It is 2hara2teristi2 of
Relian2e leadershi"* The1 thin5 e#er1thing through and meti2ulous "lanning is their their hall mar5* >hen it 2omes to e6e2ution em"owerment em"owerment
;%
delegation down to the last em"lo1ee in the 2hain is 2learl1 demonstrated*
"First ti4e it is learnin%. Secnd ti4e it is a 4ista3e." : Mista5es
are ne#er frowned u"on instead the1 are treated as a learning o""ortunit1* o""ortunit1* It is one su2h mista5e 2on#erted to learning that 2reated the worlds largest Craft Centre lo2ated at Jamnagar* Cumulati#el1 it has trained %) =,),,, wor5men : ele2tri2ians) welders) 2ar"enters*
"Sense 2 ur%enc8" : Relian2e s"eed is legendar1 now* Relian2e has
mastered "ro3e2t management s5ills and has made it #irtuall1 into a fine art* It is this sense of s"eed that restored o"erations in re2ord time in Jamnagar) Patalganga and 'aHira after 0eing affe2ted 01 212lones and floods* 'ard wor5) timel1 de2isions) s"eed and ingenuit1 sa1s one of the senior managers of Relian2e Industries to sum u" what Relian2e is all a0out* It is e#id e#iden entt that that Reli Relian an2e 2e Indu Indust stri ries es is wher wheree it is toda toda1 1 0e2a 0e2aus usee of Inno#ation in thin5ing and e6e2ution* i#en its am0ition for India and its own organiHation Relian2e leadershi" has now ta5en on a ma3or initiati#e in the inno#ation domain*
;&
OBJECTIVES OF THE STUDY
O9HECTIVES OF ST/-
Find out Ratios related to wor5ing 2a"ital management of RI4 and 2om"are with last = 1ears*
Find de#iation of 2al2ulated from standard or Norms*
;-
To stud1 the 2ustomer "referen2e towards relian2e 2ommuni2ations as 2om"ar 2om"ared ed to its 2om"et 2om"etito itors rs namel1 namel1 Airte Airtel) l) (odafon odafone) e) Idea) Idea) Tata Do2omo*
To suggest measures to im"ro#e its mar5et share and "ositioning*
SCOPE OF ST/-
The s2o"e of this stud1 is to "ro#ide an insight into 2on2e"t of wor5ing 2a"ital management and illustrate it 01 a2tuall1 wor5ing 2a"ital management of RI4* RI4* This This stud1 stud1 also also "ro#id "ro#ides es insigh insightt of the 2ustomer 2ustomer "refer "referen2 en2ee of Relian Relian2e 2e Commun Communi2a i2atio tions ns and its mar5et mar5et share share as 2om"ar 2om"ared ed to Airtel) Airtel) (odafone) Idea) Tata Do2omo
;;
RESEARCH METHODOLOGY
RESEARC! MET!O/OLOG;=
For For e#er e#er1 1 2om" 2om"reh rehen ensi si#e #e rese resear2 ar2h h a "ro" "ro"er er rese resear ar2h 2h meth method odol olog og1 1 is indis"ensa0le < it has to 0e "ro"erl1 2on2ei#ed* The methodolog1 ado"ted 01 me is as follows:
RESEARC! PRO9LEM
To 5now the wor5ing 2a"ital management of RI4 with the hel" of ratio anal1sis*
To anal1He the mar5et strength of relian2e 2ommuni2ations*
!-POT!ESIS OF T!E ST/A resear2h h1"othesis is the statement 2reated 01 a resear2her when the1 s"e2ulate u"on the out2ome of a resear2h resear2h or or e6"eriment e6"eriment** For the stud1 of 2ustomer 2ustomer "referen2e towards Relian2e Relian2e Communi2ations Communi2ations the following h1"othesis was set u"*
', The There is no sign ignifi ifi2an 2ant rel relati ations onshi" hi" 0etw 0etwee een n fa2t fa2to ors and and satisfa2tion le#el*
'% There is signifi2ant relationshi" 0etween fa2tors and satisfa2tion le#el*
RESEARC! /ESIGN ;.
A22ording to Clifford >ood1) resear2h 2om"rises defining and redefining "ro0lems) formulating h1"othesis or suggested solutions 2olle2ting) orga organi niHi Hing ng
and and
e#al e#alua uati ting ng
data data
ma5i ma5ing ng
dedu dedu2t 2tio ions ns
and and
rea2 rea2hi hing ng
2on2lu 2on2lusio sions ns and at last last 2arefu 2arefull1 ll1 testin testing g the 2on2lu 2on2lusio sions ns to determi determine ne whether the1 fit the formulating h1"othesis* This resear2h is di#ided in two "arts 8i9 8i9
>or5i or5ing ng Ca"i Ca"ita tall Mana Manage geme ment nt thro throug ugh h se2on se2onda dar1 r1 data data 0ase 0ased d on 2ertain "arameters
8ii 8ii9
an e6"l e6"lo orat rator1 or1 res resear2 ear2h h 0ase 0ased d on a sur# sur#e1 e1 of the the 2on2 on2ern erning ing lite litera ratu ture re** A sam" sam"le le sur# sur#e1 e1 was was 2ond 2ondu2 u2ti ting ng with with the the hel" hel" of !2he !2hed duli uling Meth ethod of 2oll 2ollee2ti 2ting data data i*e i*e* "ers ersona onall1 ll1 the enum enumer erat ator or #isi #isite ted d and and got got the the @ues @uesti tion onna naire iress fill filled ed from from the the res"ondents* The enumerator in this method hel"s the res"ondents in re2o re2ord rdin ing g thei theirr answ answer erss to #ari #ariou ouss @ues @uesti tion onss in the the said said s2hedules*
SORCES OF /ATA There are two t1"es of data #iH* "rimar1 and se2ondar1* The primary data are those whi2h are 2olle2ted afresh and for the first time) and thus ha""en to 0e original in 2hara2ter* 2hara2ter* The secondary data) on the other hand) are those whi2h ha#e alread1 0een 2olle2ted 01 someone else and whi2h ha#e alread1 0een "assed through the statisti2al "ro2ess* For this resear2h re"ort) "rimar1 data was 2olle2ted 2olle2ted through @uestionnair @uestionnaires es from 2ustomers and re2harge dealers of se2tor + and and there was no 0ias on the "art of the enumerator while sele2ting the sam"le for the anal1sis 2on2erning Relian2e Com"etitors* ;/
!e2ondar1 data was used for the wor5ing 2a"ital management of RI4 that is 2om"an1 annual re"orts) "rofit and loss a22ount and 0alan2e sheet for the 1ear 1earss &,,; &,,;:, :,=) =) &,,= &,,=:, :,.) .) &,,. &,,.:, :,/) /) &,,/ &,,/:, :,+) +) &,,+ &,,+:, :,) ) 0ro2 0ro2hu hures res from from re2harge dealers) magaHines and news"a"ers*
SAM PLE SIE For this resear2h) in "art one) a sam"le siHe of annual re"orts for = 1ears &,,;:,=) &,,=:,.) &,,.:,/) &,,/:,+) &,,+:, were ta5en* For the se2ond "art) a sam"le siHe of %,, res"ondents was ta5en out of the total 2ustomers using mo0ile "hones*
SAMPLE AREA
The sam"le sam"le area area was Bho"al Bho"al in#ol# in#ol#ed ed res"ond res"ondent entss 2oming 2oming to re2har re2harge ge dealers in se2tor + and and the residents of se2tor +*
STATISTICAL TOOLS SE/ The #arious statisti2al tool used were data distri0ution ta0les) gra"hs and "ie 2har 2harts ts** Rati Ratio o anal anal1s 1sis is was was used used for for dete determ rmin inin ing g the the wor5 wor5in ing g 2a"i 2a"ita tall management of RI4* '1"othesis testing through Chi !@uare test was used in Customer Preferen2e Prefer en2e Towards Towards Relian2e Communi2ations*
;+
LIMITATIONS LIMITATIONS OF T!E ST/-
Fll1in% 1ere t#e li4itatins 2 t#e stud8:
Time was limited*
The sam"le siHe of %,, is #er1 small and more than that 2ould not 0e "ossi0le*
The stud1 was onl1 0ased on the sur#e1 of res res"ondents in C'ANDIAR' and no other area 2ould 0e underta5en for the sur#e1 due to la25 of trans"ort and time*
This of wor5ing 2a"ital management is 0ased solel1 u"on the annual re"orts of the 2om"an1 in hard 2o"1 and through 2om"an1 we0site*
Onl1 = 2om"anies 2ould 0e 2om"ared for the mar5et anal1sis in order to a#oid 2om"le6it1 of data *
;
DATA COLLECTION
Types of data o!!et"o#
=,
There are two t1"es of data 2olle2tion methods a#aila0le* %* Primar1 data 2olle2tion &* !e2ondar1 data 2olle2tion
1)
Primary data collection method
The "rimar1 data is that data whi2h is 2olle2ted fresh or first hand) and for first first time time whi2h whi2h is origin original al in nature nature** Primar Primar1 1 data data 2an 2olle2 2olle2tt throug through h "ersonal inter#iew) inter#iew) @uestionnaire et2* to su""ort su""ort the se2ondar1 data data #
2) Secondary data collection method The se2ondar1 data are those whi2h ha#e alread1 2olle2ted and stored* !e2ond !e2ondar1 ar1 data data easil1 easil1 get those those se2ond se2ondar1 ar1 data data from from re2ord re2ords) s) 3ourna 3ournals) ls) annual re"orts of the 2om"an1 et2* It will sa#e the time) mone1 and efforts to 2oll 2olle2 e2tt the the data data** !e2o !e2ond ndar ar1 1 data data also also made made a#ai a#aila la0l 0lee thro throug ugh h trad tradee magaHines) 0alan2e sheets) 0oo5s et2* This "ro3e2t is 0ased on "rimar1 data 2olle2ted through "ersonal inter#iew of head of a22ount de"artment) head of !QC de"artment and other 2on2erned staf stafff mem0 mem0er er of finan finan2e 2e de"a de"artm rtmen ent* t* But But "rim "rimar1 ar1 data data 2oll 2olle2 e2ti tion on had had limitation limitationss su2h as matter matter 2onfidenti 2onfidential al informatio information n thus "ro3e2t is 0ased on se2ond se2ondar1 ar1 informa informatio tion n 2olle2 2olle2ted ted throug through h fi#e fi#e 1ears 1ears annual annual re"ort re"ort of the 2om"an1) su""orted 01 #arious 0oo5s and internet sides* The data 2olle2tion was aimed at stud1 of wor5ing 2a"ital management of the 2om"an1
=%
Data a#a!ys"s $ I#te%p%etat"o#
5WORKING CAPITAL CAPITAL MANAGEMENT OF RIL6
=&
CRRENT RATIO
It is also 5nown as wor5ing 2a"ital ratio *It is a measures of short:term finan2ial finan2ial strength strength of the 0usiness 0usiness and shows whether whether the 0usiness 0usiness will 0e a0le to meet it? s 2urrent lia0ilities as when the1 mature*
Current Assets in2luding assets whi2h 2an 0e 2on#erted in to 2ash easil1
and itself li5e mar5et se2urities de0tors) in#entor1) "re"aid e6"enses et2* Current Lia@ilities in2luded 2reditors) 0ills "a1a0le) a22rual e6"enses) short
term 0an5 loan) in2ome in2ome ta6 lia0ilities lia0ilities and long term de0t maturit1 in 2urrent 1ear* In short it 2an 0e said as all o0ligation within a 1ear are in2luded in 2urrent lia0ilities* Current rati is a measure of the firm?s short term sol#en21* It indi2ate the
a#aila0ilit1 of 2urrent assets in ru"ee of 2urrent lia0ilities* As a 2on#entional rule) a 2urrent ratio should 0e or slightl1 more* It fo2uses the strong of wea5 "osition of the 2om"an1* 2om"an1*
Fr t#e 8ear:
=-
?))( & ) ;
Rs. =+/;.*,/
%*.%%
Rs. -=/=.*+
?)), & )( ;
Rs. =%;++*+/
&*%%
Rs. &-;%/*=%
?))+ & ), ;
Rs. &%-*-=
%*//%
Rs. %.+.=*=-
?))D & )+ ;
Rs. &;=/;*;=
%*.%
Rs. %&=.-*=,
?)) & )D ;
Rs. &+;=&*=%
&*%;%
Rs. %-&+-*=
-EARS
CRRENT RATIO
&,,+:,
%*.%%
&,,/:,+
&*%%
&,,.:,/
%*//%
&,,=:,.
%*.%
&,,;:,=
&*%;%
=;
INTERPRETATION:
It is generall1 0elie#ed that &% ratio shows a 2omforta0le wor5ing 2a"ital "osition* The tendon 2ommittee a""ointed 01 RBI had wide re2ommended a 2urrent ratio of &%* Com"an1 has maintained this ration and in2reased it 1ear 01 1ear* A 2urrent ratio is %*.% in the 2urrent 1ear* But in the other 1ear the ratio is nearer to %& so we 2an 2an sa1 sa1 that that the the 2om" 2om"an an1 1 ha#i ha#ing ng 2omfo 2omfort rta0 a0le le wor5 wor5in ing g 2a"i 2a"ita tall "osition*
ACI/&TEST RA RATIO TIO
The measure of a0solute li@uidit1 ma1 0e o0tained onl1 2ash and 0an5 0alan2e as well as onl1 read1 mar5eta0le se2urit1 with li@uid lia0ilities* This is e#er1 e6isting standard of li@uidit1 and it is satisfa2tion if the ratio is %*=,%*
==
Fr t#e 8ear: ?))( & ) ;
Rs. =+/;.*,/ &,%,*.% %*,+%
Rs.
?)), & )( ;
Rs. =%;++*+/ : %%&.*%; &*%%
Rs.
?))+ & ), ;
Rs. &%-*-= %&%-.*=%
Rs.
?))D & )+ ;
Rs. &;=/;*;= %,%%*+&
Rs.
?)) & )D ;
Rs. &+;=&*=% /;%&*++
Rs. -EARS
-=/=.*+
&-;%/*=% %*-+%
%.+.=*= %*%=%
%&=.-*=, %*=+%
%-&+-*=
ACI/&TEST RATIO
?))(&)
'.)(:'
?)),&)(
'.*(:'
?))+&),
'.)D:'
?))D&)+
'.'D:'
?))&)D
'.D(:'
=.
INTERPRETATION:
A2id:test ratio is near to one in 2urrent 1ear that is %*,+ as 2om"are to %*-+ in the "re#ious 1ear* O#er all the a2id:test ratio of last fi#e 1ear is #er1 satisfa2tor1 so we 2an 2on2lude that the a0solute li@uidit1 of the Relian2e Industries 4imited is in fa#or*
/E9TORS TRNOVER RA RATIO TIO
This ratio shows the "ro"ortion of sales to a#erage re2ei#a0les* It shows the effi2ien21 of the 2olle2tion "oli21 of the firm* The higher the ratio) the less satisf satisfa2t a2tor1 or1 "ositi "osition on of the the firm* firm* 'igher 'igher ratio ratio indi2a indi2ates tes wea5 wea5 2olle2 2olle2tio tion n "oli21 of the firm*
Fr t#e 8ear: ?))( & ) ;
Rs. %=%&&;*,% -%*&%%
Rs. ;+;;*/
?)), & )( ;
Rs. %-/%;.*.. &&*.,%
Rs.
?))+ & ), ;
%%%.&*/& Rs. %%%.&*/&
Rs. -/-&*;&
.,.+*-, &*&%
=/
?))D & )+ ;
Rs. +%&%%*--
Rs. ;%.-*.&
?)) & )D ;
Rs. ..,=%*-,
Rs. -&/*+%
YAR!
%*=,%
%.*+&%
"#T$R! T%R&$'R RATI$
&,,+:,
-%*&%%
&,,/:,+
&&*.,%
&,,.:,/
&*&%
&,,=:,.
%*=,%
&,,;:,=
%.*+&%
INTERPRETATION:
>e 5now that the higher De0tor?s turno#er ratio is not good for the firm* In the 1ear &,,+:, it is -%*&%% 0ut in the "re#ious 1ear it was &&*.,%* !o some im"ro#ement is needed*
=+
CRE/ITORJS TRNOVER RATIO :
Credit Creditor? or?ss turno# turno#er er ratio ratio shows shows the "ro"or "ro"ortio tion n of "ur2ha "ur2hase se to a22oun a22ountt "a1a0le num0er of da1s within whi2h we ma5e "a1ment to our 2reditors for 2redit "ur2hases estimated the 2reditors ratio if this ratio is higher it means 2om"an1 has to 2he25 whether 2om"an1 is ma5ing "a1ment within 2redit "eriod a#aila0le* If it is ma5ing "a1ment 0efore the due date means the 2om"an1 is not ta5ing full ad#antage of it 2redit "eriod and if 2om"an1 ma5ing the "a1ment the "eriod that indi2ates that the 2om"an1 is not ta5ing the 0enefit of dis2ount allowed*
Fr t#e 8ear: ?))( & ) ;
Rs. %%+.%*%. -*--%
Rs. -=/=.*+
?)), & )( ;
Rs. %,+&/,
Rs. &-;%/*=%
?))+ & ), ;
Rs. &-,%*,
Rs. %.+-=*=-
?))D & )+ ;
Rs. .,;-*;-
Rs. %&=.-*=,
?)) & )D ;
Rs. =&/%=*&
Rs. %-&+-*=
;*.&%
=*;/%
=*;%
-*.%
=
-EARS
CRE/ITORJS TRNOVER RATI
&,,+:,
-*--%
&,,/:,+
;*.&%
&,,.:,/
=*;/%
&,,=:,.
=*;%
&,,;:,=
-*.%
INTERPRETATION:
'igher Ratio of 2reditor turno#er for2es the 2om"an1 to 2he25 that "a1ment is made with in 2redit "eriod "ro"erl1 or not* The 2reditors? turno#er ratio is -*-- in &,,+:, as 2om"are to &,,/:,+ the ratio is ;*.& whi2h is higher than the other 1ears*
RATIO TIO INVENTOR- TRNOVER RA
This ratio is also 5nown as sto25 turno#er ratio* The num0er of times the a#erage sto25 is turno#er during the 1ear is 5nown as sto25 turno#er* It is
.,
2om"uted 01 de2iding the sales 01 the in#entor1* The ratio is im"ortant in 3oining the a0ilit1 a0ilit1 of management whi2h it 2an mo#e the sto25*
Fr t#e 8ear: ?))( & ) ;
Rs. %=%&&;*,% /*=% times
Rs. &,%,*.%
?)), & )( ;
Rs. %-/%;.*.. /*%/ times
Rs. %%&.*%;
?))+ & ), ;
%%%.&*/& Rs. %%%.&*/&
Rs. %&%-.*=%
?))D & )+ ;
Rs. +%&%%*--
Rs. %,%%*+&
?)) & )D ;
Rs. ..,=%*-,
Rs. /;%&*++
-EARS
*&, times
+ times
+*% times
INVENTOR- TRNOVER RATIO
&,,+:,
/*=% times
&,,/:,+
/*%/ times
&,,.:,/
*&, times
&,,=:,.
+*,, times
.%
&,,;:,=
+*% times
INTERPRETATION:
'igher the ratio more "rofita0ilit1 the 0usiness would 0e* The ratio is 3oining the a0ilit1 of management with whi2h it 2an mo#e the sto25* In#entor1 turno#er ratio is highest in the 1ear &,,.:,/ is *&, as 2om"are to the other 1ear 0ut in 2urrent 1ear it is /*=% whi2h is little lower than "re#ious 1ear 0ut it is o0#ious that in hea#1 industries li5e Relian2e Industries 4imited ha#e
lower ration as 2om"are to FMC*
RATIO TIO NET WORKING CAPITAL TRNOVER RA
Net wor5ing 2a"ital turno#er ratio is o0tained 01 net wor5ing 2a"ital 3oining to sales* The e62ess of 2urrent assets o#er 2urrent lia0ilities is 2alled wor5ing 2a"ital* It is found for measuring firm li@uidit1* It also measures the firm "otential reser#e of funds*
.&
Fr t#e 8ear: ?))( & ) ;
Rs. %=%&&;*,% =*+- times
Rs. %+/;*,.
?)), & )( ;
Rs. %-/%;.*..
Rs. &;.&&*%+
?))+ & ), ;
%%%.&*/& Rs. %%%.&*/&
Rs. %%--;*=
?))D & )+ ;
Rs. +%&%%*--
Rs. +%%*/
?)) & )D ;
Rs. ..,=%*-,
Rs. %%-&,
=*=/ times
*+= times
%, times
=*+- times
-EARS
WORKING CAPITAL TRNOVER RATIO
&,,+:, &,,/:,+ &,,.:,/ &,,=:,.
/*., times =*=/ times *+= times %,*,, times
&,,;:,=
=*+- times
.-
INTERPETATION:
As "er the 0alan2e sheet data of the 2reditor the wor5ing 2a"ital turno#er ratio is different for the different 1ears* The ratio is /*., in &,,+:, and =*=/ in &,,/:,+ 0ut the 0est fa#ora0le ratio is in &,,=:,. whi2h is %, times* !o it means means that that higher higher the ratio ratio 0etter 0etter the wor5in wor5ing g 2a"ita 2a"itall 2ondit 2ondition ion of the 2om"an1*
/E9TOR COLLECTION PERIO/
The De0t Colle2tion shows the num0er of da1s ta5en to 2olle2t the de0ts of 2redit sales* It shows the effi2ien21 and 2olle2tion "oli21 of the 2om"an1* The ratio ratio is 2om"ute 2om"uted d 01 di#idin di#iding g the De0tor? De0tor?ss turno# turno#er er ratio ratio in to -.= da1s* .;
Fr t#e 8ear:
?))( & ) -.= da1s
%% %% da1s
-%*&%
?)), & )( ; -.= da1s
%.*%= da1s
&&*.,
?))+ & ), ; -.= da1s
%&*&, da1s
&*& ?))D & )+
; -.= da1s
%+*/% da1s
%*=,
?)) & )D ; -.= da1s
&%*/, da1s
%.*+&
-EARS
&,,+:, &,,/:,+ &,,.:,/ &,,=:,. &,,;:,=
/E9TORS COLLECTION PERIO/
%%*,, da1s %.*%= da1s %&*&, da1s %+*/% da1s &,*/% da1s
.=
INTERPRETATION:
The 2olle2tion "eriod is highest in &,,;:,= is &,*/% da1s as 2om"are to #er1 low in &,,+:, is onl1 %% da1s* This shows the im"ro#ement in 2olle2tion "oli21 of the Relian2e Industries 4imited* !o it is #er1 im"ortant for an1 2om"an1 to 2olle2t the de0s whi2h this 2om"an1 do #er1 well*
STATEME STATEMENT NT OF RATIO ANAL-SIS ())*-)+
()),-)*
())-),
()).-)
())/-).
Current ratio
% *. ;
&*%
%*//
%*.
&*%;
Acid-test ratio
% *, +
%*-+
%*,=
%*%=
%*=+
"ebtor0s "ebtor0s turnover ratio
-%*&%
&&*.,
&*&
%*=,
%.*+&
- *- -
;*.&
=*;/
=*;
-*.
RATI$! RATI$!
Creditor0s Creditor0s turnover ratio
..
/ *= %
/*%/
*&,
+*,,
+*%
&et-1or2ing capital turnover /*., ratio
=*=/
*+=
%,*,,
=*+-
%.*%=
%&*&,
%+*/%
&%*/,
Inventory turnover turnover ratio
"ebt collection period
%%
TA9LE '
CONSMER PREFERENCE TOWAR/S CELL P!ONE SERVICE PROVI/ERS
./
S.NO
NAME OF T!E SERVICE
NM9ER OF
PROVI/ER
RESPON/ENTS
%
Relian2e Communi2ations
;
&
Airtel
=;
-
(odafone
.%
;
Idea
&-
=
Tata Do2omo
-
INTERPRETATION:
Most of the Res"ondents "refer (odafone (odafone followed 01 Airtel) Relian2e
Communi2ations) Tata Do2omo and Idea res"e2ti#el1* The num0er of res"ondents are more than %,, 0e2ause of multi"le res"onses 01 the res"ondents*
TA9LE ? SERVICE PREFERENCE OF RESPON/ENTS ON T!E 9ASIS OF AGE WISE
CLASSIFICATION
.+
S.NO
NAME OF T!E SE SERVICE PROVI/ER
PTO ?) 8ears.
?'&*)
OF RESPON /ENTS -&
8ears NO. OF RESPON /ENTS &%
%
Relian2e Communi2ations
NO. OF RESPON/ ENTS +
&
Airtel
-.
%
-,*&
-
(odafone
.
&;
&%
--*+/
;
Idea
&
+
,
,
=
Tata Do2omo
,
,
%
% *.
TOTAL
?D
'))
+?
*'&) 8ears
) 8ears and A@0e
OF RESPON /ENTS --*+
'))
TOTAL
NO. OF RESPON/E NTS
OF RESPON/EN TS
NO. OF RESPON/EN TS
OF RESPON/EN TS
NO. OF RESPON/ ENTS
OF RESPO N/ENT S
%
%.*./
&
&+*=/
-&
-&
&
--*--
;
=/*%;
-;
-;
-
=,
%
%;*&
-%
-%
,
,
,
,
&
&
,
,
,
,
%
+
'))
,
'))
'))
'))
.
INFERENCE:
Among res"ondents u"to &, 1ears of age grou") ma3orit1 of them 8i*e*
-.9 are using Airtel folllowed 01 Relian2e users8-&9* Consumers in the age grou" of &% -, 1ears =/ of res"ondents are mostl1 "refer (odafone and Relian2e8--*+ and --*+/ res"e2ti#el19
and -, of the res"ondents are using Airtel* =, of 2ustomers are using (odafone) who are in the age grou" of -%
;, 1ears* ;% and a0o#e =/ of the res"ondents are using Airtel and &+*=/ of res"ondents are using Relian2e*
TA9LE * COMPOSITION OF RESPON/ENTS ON T!E 9ASIS OF MARITAL STATS
/,
S.NO.
MARITAL STATS
NM9ER OF RESPON/ENTS
OF RESPON/ENTS
%*
MARRIED
--
--
&
NMARRIED
./
./
'))
'))
TOTAL
INFERENCE:
The married res"ondents are using 2ell "hones in --) 0ut the unmarried res"ondents are using 2ell "hones in ./*
TA9LE
COMPOSITION OF RESPON/ENTS ON T!E 9ASIS OF E/CATION E/CATION >ALIFICATION
/%
S.NO.
E/CATIONAL >ALIFICATION
NM9ER OF RESPON/ENTS
OF RESPON/ENTS
%*
-&
-&
&
PTO 'I'ER !ENIOR !ECONDAR$ RADATE!
.%
.%
-
PROFE!!IONA4!
/
/
;
OT'ER!
,
,
'))
'))
TOTAL
INFERENCE:
The ma3orit1 of the res"ondents .&*=, 8graduates9 are using 2ell "hones and -,*// 8u"to '!C9 res"ondents are using 2ell "hones TA9LE D
COMPOSITION OF RESPON/ENTS ON T!E 9ASIS OF OCCPATION
/&
S.NO.
OCCPATION
NM9ER OF RESPON/ENTS
OF RESPON/ENTS
%*
BI!NE!!
%&
%&
&
PROFE!!IONA4
&
&
-
EMP4$OEE
--
--
;
'OME MALER
+
+
=
!TDENT
;;
;;
.
OT'ER!
%
%
'))
'))
TOTAL
INFERENCE:
;; of the total sam"le who are students are using 2ell "hones) followed 01 em"lo1ees 8--9) 0usinessmen 8+9) home ma5ers 8+9 and others 8%9* TA9LE +
TA9LE S!OWING SORCE OF INFORMATION TO SELECT SERVICE PRO(IDER! S.NO.
OCCPATION
NM9ER OF RESPON/ENTS
OF RESPON/ENTS
/-
%*
Famil1 Mem0ers
;,
;,
&
Neigh0ours
&
&
-
Relations
=
=
;
Friends
-/
-/
=
Ad#ertisement
;
;
.
Dealers
.
.
/
Others
.
.
'))
'))
TOTAL
INFERENCE:
The most influen2ing fa2tor for 2hoosing the ser#i2e "ro#ider a22ording to the res"on res"onden dents ts is Famil1 Famil1 Mem0er Mem0erss 8;,9 8;,9 follow followed ed 01 Friend Friendss 8-/9) 8-/9) Dealers and Others 8. 0oth9) Relations 8=9) Ad#ertisement 8;9 and Neigh0ours 8&9*
TA9LE NO: (
/;
COMPOSITION OF RESPON/ENTS ON T!E 9ASIS OF PRPOSE OF PRC!ASE OF T!E CELL P!ONES
S.NO.
PRPOSE
NM9ER OF RESPON/ENTS
OF RESPON/ENTS
%*
For Business
;&
;&
&
For Personal
=+
=+
'))
'))
TOTAL
INFERENCE: ;& of res"ondents are using 2ell "hones for their 0usiness) and =+ of res"ondents are using 2ell "hones for their "ersonal usage*
TA9LE ')
/=
AWARENESS ARENE SS OF VARIO VARIOS S SC!EMES SC!E MES S.N
%
&
-
;
=
VARIOS SERVICES
!C'EME OF INITIA4 PRC'A!E BA4ANCE OF TA4L C'ARE! PERIODICA 4 OFFER! CA44 >AITIN AND CA44 DI(ERTIN OPTION MODE! OF PA$MENT
AWARE NO.OF RESPON /ENTS .%
OF RESPON /ENTS .%
NAWARE NO.OF RESPON /ENTS -
OF RESPON /ENTS -
TOTAL NO.OF RESPON/ ENTS %,,
OF RESPON/EN TS %,,
.-
.-
-/
-/
%,,
%,,
=+
=+
;&
;&
%,,
%,,
.%
.%
-
-
%,,
%,,
=;
=;
;.
;.
%,,
%,,
INFERENCE: /.
.- of res"ondents are aware a0out the tal5 2harges) =+ of res"ondents are aware a0out #arious "eriodi2al offers and - are unaware of 2all waiting and 2all di#erting o"tion* ;. of res"ondents are unaware a0out the modes of "a1ment and .% of res"ondents onl1 aware a0out the s2hmes of initial "ur2hase
TA9LE NO: '' INFLENCING FACTORS TO SELECT T!E SERVICE PROVI/ER //
S.NO.
FACTORS
NM9ER OF RESPON/EN
%*
De"osit Amount
%-
&
Brand Image
;=
-
A#aila0ilit1
%,
;
Credit Fa2ilit1 for Conne2tion
+
=
Customer Care !er#i2e
%/
.
!er#i2e Charges
/
TOTAL
'))
INFERENCE:
;= of res"ondents are "ur2hasing a "arti2ular ser#i2e "ro#ider 01 its Brand Image) %/ of res"ondents are 2hoosing the "arti2ular ser#i2e "ro#ider 01 their 2ustomer 2are ser#i2e) %- 01 De"osit Amount) %, 01 A#aila0ilit1) + 01 Credit Fa2ilit1 for Conne2tion and / 01 !er#i2e Charges*
TA9LE NO: '?
/+
CONSMERJS SATISFACTION LEVEL ON T!E 9ASIS OF PRICE OF T!E CELL P!ONE PROVI/ERS
S.N O
%
& ; =
SERVICE !IG!LPROVI/ER SATISFACTOR Relian2e &+ Comuni2atio ns Airtel -, (odafone -+ Idea %, Tata %; Do2omo
SATISFACTOR NON TOTA SATISFACTOR L %& ;
&, %= /
; %, %-
=; .% -+ &;
INFERENCE:
-+ -+ of the the res" res"on onde dent ntss are are high highl1 l1 sati satisfi sfied ed for for the the "ri2 "ri2ee of (odaf odafon onee follo followe wed d 01 Airt Airtel el)) relia relian2 n2ee Commu Communi ni2a 2ati tion ons) s) Tata ata Do2o Do2omo mo and and Idea Idea res"e2ti#el1* res"e2ti#el1* Peo"le using Idea ser#i2e are not satisfied in ma3orit1 out of the total num0er of res"ondents using Idea ser#i2e* TA9LE NO: '*
CONSMERJS SATISFACTION LEVEL ON T!E 9ASIS OF AFTER SALES SERVICE OF T!E SERVICE PROVI/ER /
S.N O
%
& ; =
SERVICE !IG!LPROVI/ER SATISFACTOR Relian2e -% Comuni2atio ns Airtel ;= (odafone - Idea Tata Do2omo %=
SATISFACTOR NON TOTA SATISFACTOR L %& . ;
= %& = .
; %, %; -
=; .% -+ &;
INFERENCE:
Ma3orit1 of the res"ondents 8;=9 are highl1 satisfied a0out after sales ser#i2e 01 Airtel) followed 01 (odafone) Relian2e) Tata Do2omo and Idea res"e2ti#el1* %& 8Relian2e users9 and = 8Airtel users9 are satisfied 8a#erage9 01 the after sales ser#i2e* %; res"ondents of total Idea users are dissatisfied 01 the after sales ser#i2e ser #i2e whereas onl1 . and ; users of Relian2e and Airtel are dissatisfied*
TA9LE NO 'D
CONSMERJS ATTIT/E TOWAR/S TOWAR/S T!E IMPORTANCE IMPORTANCE OF CELL P!ONES
+,
CALCLA CALCL ATION OF SATISFACTORSATISFACTOR- SCORES S.NO.
% & TOTAL
NATRE
NM9ER OF
a%e OF
Ne2essit1 !tatus 4u6ur1
RESPON/ENTS .; &= %% '))
RESPON/ENTS .; &= %% '))
INFERENCE:
.; of the res"ondents state that 2ell "hones are ne2essit1) &= state 2ell "hones as a status s1m0ol and %% of res"ondents are onl1 states that 2ell "hones are lu6ur1
.
TA9LE '+
REASONS FOR F OR FACING /IFFICLT/IFFICLT- IN CELL P!ONE CONNECTION REASONS
NO. OF RESPON/ENTS
+%
Co#erage
;&
!er#i2e
-&
Clarit1
;=
Networ5 Bus1
=.
INFERENCE:
Ma3orit1 of res"ondents fa2e diffi2ult1 in their 2ell "hone 2onne2tion due to Networ5 "ro0lem followed followed 01 Co#erage "ro0lem) 2larit1 2larit1 and !er#i2e*
+&
OBSERVATIONS $ FINDINGS
O9SERVATIONS FIN/INGS Findin%s 2 1r3in% ca$ital 4ana%e4ent 2 RIL
The 2om"an1 ha#ing 2omforta0le wor5ing 2a"ital "osition*
+-
The a0solute li@uidit1 of the Relian2e Industries 4imited is in fa#our*
The 2olle2tion "oli21 of the 2om"an1 is #er1 good*
The 2reditors turno#er ratio is -*-- in &,,+:, as 2om"are to &,,/:,+ the ratio is ;*.& whi2h is higher than the other 1ears*
In#entor1 turno#er ratio is highest in the 1ear &,,.:,/ is *&, as 2om"are to the other 1ear 0ut in 2urrent 1ear it is /*=% whi2h is little 0it lower than "re#ious 1ear 0ut it is o0#ious that in hea#1 industries li5e li5e Relian Relian2e 2e Indust Industrie riess 4imite 4imited d ha#e ha#e lower lower ratio ratio as 2om"ar 2om"ared ed to FMC*
The wor5ing 2a"ital ratio is /*., in &,,+:, and =*=/ in &,,/:,+ 0ut the 0est fa#ora0le ratio is in &,,=:,. whi2h is %, times* !o it indi2ates 0etter wor5ing 2a"ital 2a"ital 2ondition of the 2om"an1* 2om"an1*
This is an im"ro#ement in 2olle2tion "oli21 of the Relian2e Industries 4imited*
FIN/INGS FOR RELIANCE COMMNICATIONS 5CSTOMER PREFERENCE6
+;
On the 0asis of 2onsumer "referen2e) ma3orit1 of the "eo"les are "referred (odafone (odafone and Relian2e at the the - rd "osition*
On the 0asis of age grou") most of the res"ondents 8--*+9) are using Relian2e) who are in the age grou" of &%:-, 1ears*
On the 0asis of marital status mostl1 unmarried res"ondents are using 2ell "hones than married res"ondents*
On the 0asis of edu2ational @ualifi2ation) most of the graduates are using 2ell "hones*
On the 0asis of o22u"ation) the students and em"lo1ees are using 2ell "hones in more le#el*
On the 0asis of famil1 in2ome) ;= of the res"ondents are using 2ell "hones) who are all get get famil1 in2ome of Rs*=) ,,% ,,% %,) ,,,*
Ma3o Ma3ori rit1 t1 of the the "eo" "eo"le less 2hoo 2hoose se the the ser# ser#i2 i2ee "ro# "ro#id ider er 01 fami famil1 l1 mem0ers influen2e*
; of res"ondents are onl1 influen2ed 01 ad#ertisements*
Ma3orit1 of the "eo"les are using 2ell "hones for "ersonal usage*
Ma3orit1 of the "eo"les are using "re"aid s2heme*
Ma3orit1 of the "eo"le are aware of the #arious s2hemes "ro#ided 01 the ser#i2e "ro#iders*
Ma3orit1 of the "eo"le 5ee" in mind the 0rand image 0efore sele2ting their ser#i2e "ro#ider* "ro#ider*
Ma3orit1 of the res"ondents are highl1 satisfied a0out the "ri2e of Airtel
Peo"le using Idea ser#i2e are not satisfied in ma3orit1 out of the total num0er of res"ondents using Idea ser#i2e*
On the 0asis of after sales ser#i2e) the ma3orit1 of the res"ondents are highl1 satisfied in Airtel) (odafone and Relian2e res"e2ti#el1* +=
On the 0asis of "eriodi2al offers) ma3orit1 of the "eo"le are highl1 satisfied 01 (odafone and Relian2e res"e2ti#el1*
GOn the 0asis of 2onsumer? 2onsumer ?s attitude) ma3orit1 of the "eo"le are states that 2ell "hones are ne2essit1 to all*
Reasons for fa2ing diffi2ult1 in 2ell "hone 2onne2tion are Networ5 "ro0lem followed 01 Co#erage Co#erage "ro0lem) 2larit1 and and !er#i2e*
+.
CONCLSION SGGESTION
CONCLSION
In the "resent stud1 I ha#e anal1Hed the wor5ing 2a"ital management of RI4 IND!TR$ 4imited*
+/
The The stud stud1 1 in#o in#ol# l#es es "ra2 "ra2ti ti2a 2all and and 2on2 2on2e" e"tu tual al o#er o#er #iew #iew of de2i de2isi sion onss 2on2erning 2urrent assets li5e 2ash and 0an5 0alan2e )in#entories8 li5e raw materials )w:i:")finished goods 9)sundr1 de0tors) loans and ad#an2es) other 2urren 2urrentt assets assets and 2urren 2urrentt lia0il lia0iliti ities es li5e li5e sundr1 sundr1 2redit 2reditors ors)) se2uri se2uritie tiess and other de"osits) other 2urrent lia0ilities and "ro#isions of RI4* >as with the o03e2ti#e of ma6imiHing the o#erall net "rofit of the 0an5* And 2om"lete s1n2hroniHation and 2o ordination among the wor5ing 2a"ital 2om"onents whi2h shall 2ontri0ute to o"timum le#el of o"erations* Mismanagement of ea2h or an1 of these 2om"onents shall 0e detrimental to the o03e2ti#es of effi2ient o"eration) "rofita0ilit1 and ma6imiHation of o#erall #alue of the 0an5* The The wor5 wor5in ing g 2a"i 2a"ita tall limi limits ts woul would d 0e 2ons 2onsid ider ered ed onl1 onl1 afte afterr the the "ro3 "ro3e2 e2tt nearin nearing g 2om"le 2om"letio tion n and after after ensuri ensuring ng 2ontro 2ontroll o#er o#er the in#ent in#entor1 or1** The in#entor1 is a great 2on2ern for RI4 and it need "ro"er "ro2urement and management* Eligi0le wor5ing 2a"ital limits would 0e assessed 01 2ash Budget method And Pro3e2ted "rodu2tion method de"ending the mar5et 2ondition) s2ale of o"eration) nature of a2ti#it17enter"rise and duration7length of o"erating 212le et2*
This stud1 also attem"ts to find out the satisfa2tion of 2onsumer regarding 2ell 2ell "hone "hone ser#i2 ser#i2ee "ro#id "ro#iders* ers* This is an inform informati ation on era signif signifi2a i2an2e n2e of information 2annot 0e o#er em"hasiHed* This de2ade) most of the "eo"les using 2ell "hones* !o) ser#i2e "ro#iders are in2reasing in more le#el in2reasing the le#el of 2om"etition* This leads to adding adding new featur features) es) s2heme s2hemes) s) "eriod "eriodi2a i2all offers offers to their their ser#i2 ser#i2ee and the 2onsumers get ma6imum 0enefit from their ser#i2e "ro#ider* "ro#ider* ++
Now:a:da1s) 2ell "hones are #er1 ne2essit1 to all* Be2ause) it is gi#e safet1 to the men and women also* The1 ha#e also 0e2ome a status s1m0ol for 1oung geeration* But one should also not forget the disad#antages of 2ell "hones and should tr1 a#oidi a#oiding ng it es"e2i es"e2iaal aal1 1 for 2hildr 2hildren en as it ham"er ham"erss their their de#elo de#elo"me "ment nt mentall1 and 2an endager their health* Crimes are also in2reasing relating to 2ell "hones and "eo"le should 0e 2areful
SGGESTIONS The re2ommendation < suggestion for effe2ti#e management of wor5ing 2a"ital at RI4 are gi#en 0ellow
+
34 For in#entor1) in order to im"ro#e the "osition) RI4 2an redu2e the le#el of sto25s sto25s 01 resort resorting ing to "hased "hased "rodu2 "rodu2tio tion n i*e* i*e* "rodu2 "rodu2ing ing a22ord a22ording ing to re@uirement and dis"osing off or re212ling the unser#i2ea0le in#entories* 'owe#er) the low turno#er of sto25 ma1 also 0e due to "ro0lems with gene genera rati tion on of sale sales* s* In#e In#ent ntor1 or1 mana manage geme ment nt is a grea greatt 2on2 2on2er ern n for for RI4 RI4 es"e2iall1 stores and s"ares* The "ur2hase manager should ta5e "ro"er ste"s for "ro2urement of in#entories* (54 The 2om"an1 must ta5e 2ertain ste"s to de2rease the wor5ing 2a"ital 212le* One wa1 2an 0e 0etter management of in#entories* 654 RI4 is suggested to maintain a 0alan2e in 2a"a2ities) s1n2hroniHation of #arious in"uts a#aila0ilit1 of some materials or "arts whi2h are not easil1 a#aila0le* /54 !hort term 2redit "eriod a#ailed must 0e redu2ed and sundr1 2reditors should 0e "aid faster* .54 It should maintain in#entor1 at an o"timum le#el rather than a #er1 o"timisti2 le#el*
. 54 The "ro2urement for materials re@uisition "ro2essing should 0e redu2ed so as to minimiHe the lead time* ,54 Freedom should 0e there in de2iding the 2redit "oli2ies) 2ash dis2ount or 2redit ratings*
+ 4* RI4 2an also 2onsider negotiating its 2reditors for rela6ing the de0t re"a1ment "eriod and re"a1ing onl1 on or 3ust 0efore the e6"ir1 of the 2redit "eriod*
The re2ommendation < suggestion for effe2ti#e management of wor5ing 2a"ital at RI4 are gi#en 0ellow
,
Relian2e Comm* should e6"and their 2ustomer 0ase* But it also has an ad#antage o#er Tata Do2omo and Idea*
Relian2e Comm* should tr1 to attra2t old "eo"le also*
It shou should ld 2on2 2on2en entr trat atee on good good ad#e ad#ert rtis isem emen ents ts for for thei theirr ser# ser#i2 i2ee 0e2ause) ad#ertisements ta5e ta5e little "art for influen2ing influen2ing the 2onsumers*
It should tr1 to in2rease "ost "aid users*
More awareness of their ser#i2es should 0e s"read to the 2ustomers*
Relian2e should attra2t the 2ustomers 01 redu2ing their "ri2e*
Relian2e should tr1 to in2rease their after sales ser#i2es and de2rease their dissatisfied 2ustomers 01 "ro#iding good after sales ser#i2es*
Relian2e should gi#e more "eriodi2al offers to its 2ustomers*
It shou should ld 2ome 2ome u" with with more more reas reason ona0 a0le le and and attr attra2 a2ti ti#e #e "lan "lanss for for 0usiness use*
It needs to fo2us on "ro#iding good 2larit1 of signals as 2ustomers "refer Airtel in terms of signal 2larit1 2larit1**
%
9I9LIOGRAP!-
9I9LIOGRAP!
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Finan2ial Management
I*M*Pande1
Resear2h Methodolog1
C*R*Lothari
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ANNE&URE
>ESTIONNAIRE
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I am 'AR!' !RI(A!TA(A) a student of ni#ersit1 of 4u25now) IM! 4u25now and this @uestionnaire is a "art of m1 resear2h on CRITICAL CRITICAL REVIEW REVIEW OF WORKING WORKING CAPIT CAPITAL MANAGEME MANAGEMENT NT Wit# S$ecial Re2erence t Reliance Securit8 Ltd. * I would therefore
re@uest 1ou to gi#e 1our res"onse to the @uestionnaire*
Name
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Female
Age "to &, 1rs
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Marital !tatus Married
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Q&* >hat is 1our o22u"ation K
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others
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Are 1ou aware of the the follow following ing details details relatin relating g in in 1our 1our 2onne 2onne2tion 2tionKK
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SC!EME
AWARE
NAWARE
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>hat fa2tor influen2ed 1ou to de2ide 1our Cell Phones ser#i2eK
De"osit amount
Brand Image
A#aila0ilit1 A#aila0ilit1
Credit fa2ilit1 for 1our 2onne2tion
Customer 2are ser#i2e
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NOT !ATI!FACTOR$
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diffi2ult1 1ou fa2e in 1ou 1ou 2ell "hone >').6 >hat are the reasons of diffi2ult1 2onne2tion 8if an19K
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Co#erage !er#i2e Clarit1 Networ5 Bus1
THANKING YOU
