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7/29/2019 Concor Project
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Summer Training Report
on
CONTAINER CORPORATION OF INDIA
Submitted in partial fulfillment of the requirements
For the award of the degree of
Bachelor of Business Administration
(Computer Aided Management)
To
Guru Gobind Singh Indraprastha University, Delhi
Guide: Submitted by:
Dr. JYOTI JESWANI CHIRAG SINGHAL
Affiliate to Guru Gobind Singh Indraprastha University
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NEW DELHI -110058
CERTIFICATE
Mr. CHIRAG SINGHAL Enrollment No. 0631371906 herby certify that The Summer
Training Report entitled CONTAINER CORPORATION OF INDIA
is carried out by me at CONTAINER CORPORATION OF INDIA LIMITED.
The matter embodied in this project work has not been submitted earlier for the award
of any degree or diploma to the best of my knowledge and belief.
(CHIRAG SINGHAL)
Date:
Certificate that the Summer Training Report entitled CONTAINER
CORPORATION OF INDIA done b is completed under my guidance.
(Signature of the guide)
Dr. Jyoti Jeswani
Designation: Lecturer
IITM,
New delhi-110058
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ACKNOWLEDGEMENT
A project is never the work of an individual. It is moreover a combination of ideas,
suggestions, review, contribution and work involving many folks. It cannot be completed
without guidelines.
I express my thanks to Mr. H .Kapoor (Public relations officer CONCOR) for his
valuable Suggestions, insight and encouragement.
I would also like to express my heartfelt gratitude and the privilege to acknowledge
our esteemed guide Dr. JYOTI JESWANI for her invaluable guidance and
encouragement through out this project, without whom this project could have never
been successful.
Last but not the least my sincere thanks to all the faculty members of IITM, New Delhi
and my parents for providing their help and advice whenever it was needed.
BBA (CAM)-5TH Semester
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CONTENTS
Chapter
No.
Topic Page No
Certificate.
Acknowledgement.
1 Profile of the Company.
2 SWOT Analysis of the Company.
3 Analysis of Financial Reports.
4 Lesson Learnt
Bibliography
Appendices
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LIST OF TABLES
Table No. Topic Page No
1 Details of district offices of North Zone.
2 Employee Table.
3 Ratio Analysis.
4 Balance Sheet.
5 Profit & Loss Account.
6 Cash Flow Statement.
7 Financial Highlights.
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LIST OF FIGURES
Figure No Title Page No
1 Product Range of the company.
2 Sales figure of the company.
3 Organizational Chart.
4 Organizational set up of headquarters.
CHAPTER -1
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PROFILE OF THE COMPANY
1.1 Corporate profile of the Company
Name of the Company: - CONTAINER CORPORATION OF INDIA
Address: - Container Corporation of India
CONCOR BHAWAN
C-3 Mathura Road
Opposite APOLLO HOSPITAL
New Delhi-110076
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Phone No:- 91-11-41673093
41673094
4167309
FAX: - 91-11- 41673112
E mail: - [email protected].
Official website: - www.CONCOR.com
1.2 Background
1.2.1 CONCOR - The Multimodal Logistics Professionals
Ever since globalization transformed the transport sector, national boundaries have
become permeable to penetration by trade, creating the need for flexible transport
solutions. Intermodalism and containerization were the by-products of this era and were
poised to metamorphosize transport of "general cargo", moving it 'seamlessly' through
sea and land arteries. Forty years ago, the physical process of exporting or importing
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goods was arduous. Goods needed to be transported by lorry to the port, unloaded into a
warehouse and then reloaded into the ship 'piece by piece'.
1.2.2 Malcolm McLean's idea of containerization changed the basics of cargo transport
by standardizing the dimensions of the container and simultaneously improving the
productivity of ports by mechanizing handling of container-carrying 'cellular' ships and
reducing their handling to a few hours only. Unitisation helped elimination of multiple
handling of cargo and made transfers quick, cheap and easy. As containerization came to
stand for 'cargo care', it grew by leaps and bounds the world over.
1.2.3 Indian Railway's strategic initiative to containerize cargo transport put India on the
multi-modal map for the first time in 1966. Given the continental distances in India
(almost 3000 km from North to South and East to West), rail transport could be the
cheaper option for all cargo over medium and long distances, especially if the cost of
inter-modal transfers could be reduced. Containerized multi-modal door-to-door transport
provided the ideal solution to this problem. It was this idea that saw the Indian Railways
entering the market for moving door-to-door domestic cargo in special DSO containers
starting in 1966.
1.2.4 Though the first ISO marine container had been handled in India at Cochin as early
as 1973, it was in 1981 that the first ISO container was moved inland by the Indian
Railways to India's first Inland Container Depot (ICD) at Bangalore, also managed by the
Indian Railways.
1.2.5 Expansion of the network to 7 ICDs by 1988 saw increase in the handling of
containers, and along the way, a strong view had emerged that there was a need to set up
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a separate pro-active organization for promoting and managing the growth of
containerization in India.
1.3 Introduction - Nature of Organization and its Business
1.3.1 Container Corporation of India Ltd. (CONCOR), was incorporated in March 1988
under the Companies Act, and commenced operation from November 1989 taking over
the existing network of 7 ICDs from the Indian Railways. From its humble beginning, it
is now an undisputed market leader having the largest network of 57 ICDs/CFSs in India.
In addition to providing inland transport by rail for containers, it has also expanded to
cover management of Ports, air cargo complexes and establishing cold-chain. It has and
will continue to play the role of promoting containerization of India by virtue of its
modern rail wagon fleet, customer friendly commercial practices and extensively used
Information Technology. The company developed multimodal logistics support for
Indias International and Domestic containerization and trade. Though rail is the main
stay of our transportation plan, road services are also provided to cater to the need of
door-to-door services, whether in the International or Domestic business.
CONCOR is committed to providing responsive, cost effective, efficient and reliable
logistics solution to its customers. It strives to be the first choice for its customers.
CONCOR is a customer focused, performance driven, result oriented organization,
focused on providing value for money to its customers.
1.3.2 Main Functions of CONCOR
1.3.2.1 Transportation of goods and cargoes that are meant for the purpose of the
government enterprises in order to enhance the client list of the CONCOR and to save the
expenditure of govt. enterprises.
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1.3.2.2 Logistics solutions for the organized and consolidated cargo markets.
1.3.2.3 Provision of storage facilities for the maintenance of Perishable goods.
1.3.2.4 Maintenance of cold chains for the stocking of goods for longer duration and with
safety and freshness as the first priority.
1.3.2.5 Administration of free movements of low heights containers in order to achieve
timely delivery of goods.
1.3.2.6 Fixation of a minimum judicious cost scale on which the concerned amount of
payload could be delivered to a destination.
1.3.3 Core Business
CONCOR's core business is characterised by three distinct activities, that of a carrier, a
terminal operator, and a warehouse operator.
1.3.3.1 Carrier
Rail is the mainstay of CONCORs transportation plans & strategy. Majority of
CONCOR terminals are rail-linked, with rail as the main carrier for haulage. Facilities
are, however, provided for first and last mile transportation by road also. CONCOR
benefits from a close relationship with the Indian Railways. Several of its terminals are
situated on leased Railway-land. Many of its key operating personnel are on secondment
from Indian Railways or have previously been employed by the Indian Railways.
Wagons and operational support from Indian Railways have always been available to the
company. As rail is price-competitive over long distances, the price advantage can be
passed on to clients, thus allowing for flexible and competitive pricing. The rail link also
plays a major role in decongesting our ports and the road corridors that lead to these
ports. Though rail is the mainstay of CONCOR's transportation plan, some CONCOR
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terminals are exclusively road-fed as well. We provide 94% of our inland transport
through the Indian Railways network. Road services are mostly in the form of
supplementary services to provide the door to door linkages having carried the bulk of
long lead by rail. However, where ever it is operationally or economically a superior
option, road is used as an alternative to rail as well.
1.3.3.2 Terminal and Warehouse Operator
CONCOR started operations in November 1989 with 7 Inland Container Depots (ICDs).
We have since extended the network to a total of 57 terminals, of which 48 are export-
import container depots, and 9 exclusive domestic container depots. As many as 30
terminals perform the combined role of domestic as well as international terminals. The
company expects the number of terminals to increase to 60 in the next few years
(terminal map) CONCOR's customs bonded Inland Container depots are dry ports in the
hinterland, and serve the purpose of bringing all port facilities including Customs
clearance to the customer's doorstep. The terminals are almost always linked by rail to the
Indian Railway network, unless their size or location dictates that they be linked by road.
The rail links enable us to facilitate the moving of large volumes over long distances in
the most cost effective manner. CONCOR's terminals provide a spectrum of facilities in
terms of warehousing, container parking, repair facilities, and even office complexes. As
CFS operators, CONCOR adds value to the logistics chain by offering services such as:
Transit warehousing for import and export cargo
Bonded warehousing, which enables importers to store cargo and ask for partial
releases, thereby deferring duty payment
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Less than Container Load (LCL) consolidation, and reworking of LCL cargo at
nominated hub
Air cargo clearance using bonded trucking
1.3.4 In the area of domestic business door pick up and door delivery services are the
most popular. It also use its terminal network to plan hub and spoke movements that
allow single customers to move cargo to multiple locations at a single time, with
CONCOR taking care of the distribution and re distribution requirements.
1.3.5 The key value offered is the provision of a single-window facility co-ordinating
with all the different agencies and services involved in the containerized cargo trade,
from Customs, Gateway Ports, and Railways, to road hauliers, consolidators, Forwarders,
Custom House Agents and shipping lines. To achieve a high degree of customization, we
offer packages designed to provide the most cost-effective combination of road and rail.
This enables us to offer services which can be individually tailored to every customers
specifications, while minimizing the effort he has to put in.
1.4 Geographical Areas of operation
1.4.1 The company is very well placed in terms of its outreach to its Customers
which ensures proper distribution of workload and managerial Accountability.
CONCOR as an entity is more of national operations in nature. And basically its
operations are limited to the national terrain and borders of India.
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This is an organization that basically deals with the Transit of various goods
across different geographical areas and logistic transfers of heavy cargoes on a
large scale that cannot be done conveniently. It carries out this task of transport and on
time delivery of goods on the basis of the infrastructure that it has been maintaining and
its corporate offices are spread across whole country.
1.4.2 The main geographical areas of operation of the company are as follows:
North central region Noida
Northern central region- Tuglakabad
Western central region Mumbai
South central region Hyderabad
Southern region Chennai
Central region Nagpur
Eastern region- Kolkata
North western region-Ahmedabad
1.4.3 From its humble beginning, it is now an undisputed market leader having the largest
network of 57 ICDs/CFSs in India. In addition to providing inland transport by rail for
containers, it has also expanded to cover management of Ports, air cargo complexes and
establishing cold-chain. It has and will continue to play the role of promoting
containerization of India by virtue of its modern rail wagon fleet, customer friendly
commercial practices and extensively used Information Technology. The company
developed multimodal logistics support for Indias International and Domestic
containerization and trade.
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1.5 Companys Vision & Mission
1.5.1 The corporate vision of the company is:
To deliver a world-class customer experience
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The company has been working on its strong & broad vision based guidelines, which aim
at delivering world-class customer experience. For this it has been constantly working for
the customers & modifying its strategies in their favour.
1.5.2 Companys Mission
The Companys mission is to join with the community partners and stakeholders to
make CONCOR a company of reliable logistics solutions to customers through synergy
with the community partners and ensuring profitability and growth. It strives to be the
first choice for customers. They will be firmly committed to the social Responsibility and
prove worthy of trust in the company.
1.5.3 Objectives of the Company
To be a customer focused, performance driven, result oriented organization,
focused on providing value for money to our customers.
To strive to maximize productivity utilization of resources, delivering high
quality of services, and be recognized for setting the standards for excellence.
To consistently look for new better ways to provide innovative services.
To follow highest standards of business ethics and add social value for the
community at large by discharging social obligations as a responsible corporate
Entity
1.6 Product Range
Transit warehousing for Import-Export cargoes.
Bonded warehousing (helping Importer to storeimport cargo and take Partial
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Deliveries, therefore deferring duty payments).
Provision of air cargo complexes in some terminals.
Consolidation of LCL(Less than Container Load).
Reefer movement.
Maintenance of a chain of cold storages to ensure longer preservation of
Perishable goods and further extending its shelving life.
Low height container that are capable of faster movement so that they could
Deliver the cargo in shorter span of time.
1.7 Size in terms of Manpower and Turnover
Against a sanctioned strength of 34560, 31243 officers/ officials are in position leaving
North Zone with a substantial shortfall of 3317. Shortage of staff is particularly felt more
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in regions like that of Ahmedabad and kolkata regional headquarters. In Jammu Division,
while Leh & Ladakh is run by a skeleton staff, partly on deputation. Annexure-VII shows
the region wise position of staff including Headquarters whos Cat.II, III & IV staff
members are part of the North Zone strength.
Labour force in North Zone consists of 31,127 workers consisting of three categories.
1.8 Organizational Structure
S.No. Region DepartmentalLabour
DPS NWNP Total
1. Noida 1755 296 NIL 2051
2. Tuglaqabaad 808 16007 - 16815
3. Mumbai 2255 - - 2255
4. Hyderabad 584 - 159 743
5. Kolkata 2929 3063 1172 7164
6. Chennai 64 421 873 1358
7. Nagpur 18 - - 18
8. Ahmedabad - 723 - 723
Total 8413 20510 2204 31127
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1.9 Sources of Data collection
CHAIRMAN
M.DIRECTOR
DIRECTORINTERNAL
MARKETING&OPERATIONS
DIRECTORP&S
DIRECTORFINANCE
DIRECTORDOMESTIC
AFFAIRS
INTERNALMKTG,
COMMERCAIL
OPERATIONS
PROJECTTECHNICAL
MIS
FINANCINGA/C
SECRETORIAL
INTERNALAUDITS
HR
DOMESTICMARKETING
DOMESTIC
TERMINALSRATING,
COMMISION
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The methodology adopted for this project is exploratory in nature since there is no
hypothesis that has to be tested. The conclusions have been drawn by exploratory
research work.
1.9.1 There have been two sources of information collected:
a) Primary Sources
By personal interaction with the public relations officer Mr. H. Kapoor of the
organization concerned, about the various insights and details of the company
And its expansion plans in days to come, its overseas ventures and the impact the
Current tumbles at the stock market had on the health of the CONCOR. His input has
been valuable.
b) Secondary Sources
Official website of the CONTAINER CORPORATION OF INDIA.
Memorandum and Article of association of the association of the company.
By the ratings of the stocks of the CONTAINER CORPORATION OF INDIA as
per ratings of the different stock brooking firms like that of the Karvy stock
Brooking company and Share Khan Etc.
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CHAPTER-2
SWOT ANALYSIS
2.1 Strengths of the CONCOR
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CONCOR is commanding the largest network of 57 Inland Container Depots
/Container Freight Stations in India today, enabling it operate on the largest
scale.
Transportation by rail is cheapest in the country, and CONCOR being a time
subsidy to Railways avails its services in lowest cost ever.
Energy consumption by Rail is 1/6 as compared to road, thereby further bringing
down the cost of operations.
Double/triple stack container movement would further reduce cost of operations
and bring about more in the kitty of CONCOR.
Renewed focus on customer satisfaction, a growth rate of around 16% in the Exim
and 21% in the domestic segment during FY08.
CONCOR is a subsidiary of the ministry of railways and being the only major
player in India involved in moving containerized cargo via railways in an
Organized manner (but he market share lies at only 6.7% as compared to that of
60-70%in developed countries and with entry barriers still in place to an extent,
Also economies of scale together with support of asset base.
2.2 Weakness of the CONCOR
CONCOR owns up only the 6.7% of the total logistics market in India which is
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Valued at Rs.4.5 trillion and the rest is in the hands of the unorganized retail
Logistics players like GATI, RELIANCE logistics (better called logistics
Solutions of India limited).
CONCOR suffers from the traditional problems that are faced by any public
Sector undertaking that is red-tapism, lethargy, lack of motivation, absence of
skilled labour force in adequate numbers.
The working of CONCOR still follows the redundant ways of expansion and
doesnt learn from its rivals quickly and still it has to wait for the approval of its
Ministry to bring in force any of its strategies, biting up a precious share of its
Reaction time in these fast changing marketing conditions, where an organization
is as good as its reaction and implementation speed.
To run an effective logistics business, a perfect infrastructure is required for the
smoother movement of cargo but in India, the bottlenecks of infrastructural
availability hampers the free movement of goods there by making it difficult for
CONCOR to approach small time customers.
2.3 Opportunities for the CONCOR
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At present, containerized cargo accounts for less than 20% of the total cargo
Traffic in India, compared to 70-80% in developed countries. This is where
opportunity lies for CONCOR, as it is the only major player in a growing
market characterized by huge entry barriers and economies of scale. The
Government has allowed private players to enter the containerized cargo segment,
But given the capital intensive nature of business, these players wont pose a
threat to CONCOR. Hence investors can find CONCOR feasible for investment
for the next 3-5 years
The container traffic in India has grown at a CAGR of 15% since 1991, 2.5 times
the average GDP in the same period. With the growth of external trade being
faster than GDP, the similar trends are expected to continue in future as well.
Similarly the possibilities of growth in container traffic in the Domestic sector are
immense with continued strong trends in growth of GDP and the need of the
industry for value added services.
Logistics ports, large cargo hubs will be the requirement of the industry in very
near future, as large retail chains generate the demand for professional managed
cargo delivery systems.
More depots on anvil and additional can be developed specific to retail chain
requirement.
Today the company is increasingly doubling up as a warehouse and terminal
operator opening up new avenues for it.
2.4 Threats to the CONCOR
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With a liberalized economy the avenues meant for the CONCOR are now eyed by
MNCs and other new entrants into the market, therefore the share earlier enjoyed
by the same is now up for grabs for everyone plying in the market.
With the government permitting 14 private players to run containerized rail
Transport, the sector is poised for a price war in near future and will witness a lot
of exercises to grab the maximum market share.
Lack of outreach is one threat CONCOR has been facing since its incorporation
which needs to be paid attention to because, the private players would leave no
stone unturned in order to consolidate their customer base.
CONCOR posted higher net profit growth on account of slower growth in rail
Freight cost and more than doubling of other income. The company is on the
Expansion spree and has entailed total capacity expansion of Rs.7 bn for
FY09.Therefore the company is upbeat about its aspect in the short and medium
Term but the experts have a word of caution that in the long term, the company
might get into a slowdown spin.
With the entry of big players like that of GATI, RELIANCE LOGISTICS, AHL,
DHL the sector remains unprotected for CONCOR to operate and it would be
difficult enough for CONCOR to operate and maintain its dominance in this
Sector.
2.5 Best Practices
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2.5.1 CONCOR is regularly making efforts to improve our business processed to provide
for improved quality of customer satisfaction.
2.5.2 Some of the practices adopted by the organisation for achieving these goals are
listed below:
o On line Information & Container Tracking
o Container Repair & Cleaning Facilities
o Cargo Palletisation, Strapping etc.
o Cargo Lashing/Choking Facility
o Fumigation of Cargo/Containers
o Supply Chain Management
o Door Delivery/Pick Up of Containerised cargo
o Container/Cargo Survey
o Pre Deposit Accounts
o Round the Clock Security at Terminals
o Facilitation of Customs Clearance
o Flexible Payment Arrangements
The Company conducts Customer Satisfaction Survey regularly to get a feedback from
the customers and also take action to rectify/improve our services.
CONCOR had also introduced on Companys website Feedback. Com wherein
Customers can obtain information and seek remedies on our services in the format
available under menu Customer Feedback Facility. Prompt action on these
observations/suggestions is taken to improve the quality of our services to the customer.
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CHAPTER-3
ANALYSIS OF FINANCIAL
STATEMENTS
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3.1 Analysis is based on the Audited Financial statement attached at the end of the
report as appendix. A & B.
3.1.1 Meaning of Financial Analysis: It is the systematic numerical calculation of the
relationship between one fact with the other to measure the profitability, operational
efficiency and the growth potential of the business. The analysis serves the interest of the
shareholders, debenture holders, potential investors, creditors, bankers, journalists,
legislators, politicians, researchers etc. the analysis of financial statements make it
simple, intelligible and meaningful for the concerned parties.
3.1.2 Ratio Analysis
Ratio analysis is a technique of analyzing the financial statements and refers to analysis
of financial statement by computation of ratios. In other words, ratio analysis is
statements to provide a meaningful understanding of the performance and financial
position of an enterprise.
Advantages and Uses of Ratio Analysis
1. Useful in analysis of financial statements.
2. Useful in simplifying accounting figures.
3. Useful in judging the operating efficiency of business.
4. Useful for forecasting purposes.
5. Useful in locating the weak spot of the business.
6. Useful in Inter-firm and Intra-firm comparison.
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Broadly ratios used in the analysis are:
1. Liquidity ratio (short- term solvency) Ratios
2. Long-term solvency Ratios
3. Profitability Ratios
4. Turnover Ratios
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3.4 Ratio Analysis
PARTICULARSRATIOS
2008 2007
Liquidity Ratios
1.Current Ratio
Current Assets (including stocks) to Current Liabilities
(Excluding bank borrowings)
3.37:1 2.24:1
2. Quick Ratio
Quick Assets To Current Liabilities
Quick Assets=Current assets- (stock + prepaid expenses)
0.49:1 0.12:1
Solvency Ratios
3. Total Assets to Debt Ratio
Total Assets to Long Term Debts0.11:1 1.31:1
4. Proprietary Ratio
Proprietors Funds to Total Assets
1.20:1 0.14:1
5. Debt Equity Ratio
Long Term Loans to Equity
7.15:1 5.15:1
Turnover Ratios6. Inventory Turnover Ratio
Cost of Goods sold to Average Inventory
COGS=Opening Stock + Purchases + Direct Expenses-
Closing Stock
2.80 times 2.86 times
7. Debtors Turnover Ratio
Total Sales to Accounts Receivable
Where:
Accounts Receivable= Debtors + Bills Receivable
29.13 times 36.43 times
5. Working Capital Turnover Ratio
Sales to Working Capital
Working Capital=Current Assets Current Liabilities
2.61 times 4.45 times
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6. Fixed Assets Turnover Ratio
Net Sales to Net fixed Assets
Net Fixed Assets=Fixed Assets - Depreciation
79.43 times 97.89 times
7. Current Assets Turnover Ratio
Net Sales to Current Assets2.46 times 2.46 times
8. Turnover to Capital Employed
Net Sales to Capital Employed
Capital Employed=Net Fixed Assets-Working Capital
2.51 times 4.24 times
Other ratios
9. Financing Ratios
Interest as a percentage of other expenses
5.94% 5.24%
10. Turnover (purchase & sale) per labour (MT)
1301 1469
12. Cost per employee (Rs/Annum) 356711 241301
3.5 Interpretation & Comments
3.5.1 Liquidity ratios measure the short-term solvency of the business, i.e. the firms
ability to pay its dues.
Current Ratio = Current asset
Current liability
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0
0.5
1
1.5
2
2.5
3
3.5
2007 2008
Current Ratio
Figure 3.1: Current Ratio
This ratio shows short term financial soundness of the business. Its ideal ratio is
2:1 higher to some extent the ratio is better for company.
In 2008, the current ratio of the company was 3.35:1, i.e. higher than the ideal
ratio. This indicates poor investment policies adopted by the company too with
poor inventory control. This means that company funds are lying idle in other
words are yet to be used.While in 2007, the ratio was 2.24, which is very near to
the ideal ratio indicating The company funds are not lying idle if compared to
previous year ratio.
Quick Ratio indicates the short-term debt paying capacity.
Quick Ratio= Quick Assets/liquid Assets
Current Liabilities
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0
0.1
0.2
0.3
0.4
0.5
2007 2008
Quick Ratio
Figure 3.2: Quick Ratio
In 2008 the quick ratio was 0.49 & in 2007 the quick ratio was 0.12 respectively.
This indicates overstocking i.e. the stock was in excess.
3.5.2 Solvency ratios convey an enterprise ability to meet its long-term obligations.
Total assets to Debt Ratio measures the safety margin available to suppliers of
long-term debts.
Total Assets to debt Ratio=Total Assets
Long-Term debts
0
0.2
0.4
0.6
0.8
1
1.2
1.4
2007 2008
Total Assets
to Debt Ratio
Figure 3.3: Total Assets to Debt Ratio
In 2008, the ratio was 0.11:1, which represents heavily risky financial position of
business i.e. to totally depend on outside loans. While in 2007, the ratio was 1:31, which
is satisfactory and indicates security to lenders to extend long-term loans to the business.
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Debt Equity Ratio indicates the long-term financial position and soundness of
the long-term financial policies of the company. Its ratio 2:1 is acceptable.
Debt-Equity Ratio=Debt(long-term)
Equity
0
1
2
3
4
5
6
7
8
2007 2008
Debt Equity
Ratio
Figure 3.4: Debt Equity Ratio
In 2008 the debt equity ratio of the company was 7.15:1 & in 2007 the debt equity ratio
of the company was 5.15:1, which is too high. This indicates a risky financial position of
the company and also the company had been in swinging bridge.
Proprietary Ratio
Proprietary Ratio=Proprietary funds
Total Assets
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0
0.2
0.4
0.6
0.8
1
1.2
2007 2008
Proprietory
Ratio
Figure 3.5: Proprietary Ratio
This ratio indicates the extent to which the total assets have been financed by the
proprietor. Higher the ratio greater the satisfaction for lenders and creditors.Proprietary
Ratio for 2008 was 1.20:1, which is satisfactory which means that there is safety for
creditors of all types.In 2007, the ratio was 0.14:1, which may be an alarming situation
for creditors, since they may have to lose heavily in case of losses.
3.5.3 Turnover Ratios measure the effectiveness with which a concern uses resources
at its disposal.
Inventory Turnover Ratio this ratio measures how fast the stock is moving
through the company and generating sales. higher the ratio more efficient
management of inventories .
Inventory Turnover Ratio=Cost of goods sold
Average Stock
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2.76
2.78
2.8
2.82
2.84
2.86
2007 2008
Inventory
Turnover
Ratio
Figure 3.6: Inventory Turnover Ratio
Inventory Turnover Ratio in 2008 was 2.80 & in 2007 was 2.86 times respectively
which in comparison to 2:1 is satisfactorily means neither too high nor too low. High
ratio indicates more sales being produced by a unit of investment in stocks and low
ratio indicates low sales.
Debtors Turnover Ratio indicates economy and efficiency in the collection of
amount due from debtors. higher the ratio better it is for the company which
means the debtors are being collected more quickly
Debtors Turnover Ratio=Net Credit Sales
Average a/c receivable
05
10
15
20
25
30
35
40
2007 2008
Debtors
Turnover
Ratio
Figure 3.7: Debtors Turnover Ratio
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The ratio in 2008 & 2007 was 29.13 & 36.43 respectively, which indicates that debts are
being collected more promptly. It will release funds, which may then be put to some
other use.
Working Capital Turnover Ratio indicates whether the working capital has
been effectively utilized or not in making sales.
0
1
2
3
4
5
2007 2008
Working
Capital
Turnover
Ratio
Figure 3.8: Working Capital Turnover Ratio
The ratio in 2008& 2007 was 2.61 & 4.45 times which is not so high but
satisfactory.
Fixed Assets Turnover Ratio indicates whether the investment in fixed assets is
justified in relation to the sales achieved.In 2008 and 2007.
0
20
40
60
80
100
2007 2008
Fixed Assets
Turnover
Ratio
Figure 3.9: Fixed Assets Turnover Ratio
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The ratio was 79.4 times and 97.8 times respectively this indicates efficient utilization of
fixed assets.
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CHAPTER 4
LESSONS LEARNT
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4.1 Description of My Experience
4.1.1, During the training session, I got more knowledge; first of all, I know what are
corporate world and its rules and regulations. Also I know how to behave in a
organisation. What is seniority & juniority ? What is time value and punctuality in an
organisation, how to adapt my self in a office, what is work pressure and how to handle
the ideal and rough costumers. I have also observed time management, team work and
quick learning environment which will help me to accomplish my vision
4.2 Practical Knowledge
4.2.1, Container Corporation of India has been a sea of learning experience for me. The
first & foremost thing that I have learned is the Co-operative culture & how do people
behave in Organization.
4.2.2, In Marketing Strategies I learnt how the Company promotes its product to the
Customers.
4.2.4, I learned how to handle stress & try to manage to work under Crises.
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4.3.1 Limitation of Study
4.3.1.1, It is very well known fact that Constraint & limitation are bound to be present in
any study. In completing my training, I also encountering some problem
4.3.1.2, Too much expectation from the Executives.
4.3.1.3, Company hesitates to show the records of performance of any of this Specific
products & services.
4.3.2 Suggestions
4.3.2.1 My Suggestions is that student should do Summer Training in the Company,
because its environment is full of Professionalism & Knowledge. There are lots of things
to learn:
Emerging scope of the company.
How to adapt himself in the environment.
New concept about the Industry.
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Bibliography
BIBLIOGRAPHY
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1. Advertising and Marketing
2. India Today
3. www.google.com
4. www.concor.com
5. www.encyclopedia.com
6. Manuals, handbooks and circulars of CONCOR India Ltd.
7. Kotler, Philips.Marketing Management, New Millennium Edition, 2000.
8. Ramaswamy V.S & Namakumari S. Marketing Management, Planning,
Implementation& Control Macmillan India pvt. Edition, 2002.
9. Baker Michael J. The Marketing Book Viva Books Pvt. Ltd. Edition,
2000.
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APPENDICES
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APPENDIX-A
BALANCE SHEET Balance Sheet as on 31 March 2007 and 31 March 2008
(Figures in Lakhs of Rupees)
LIABILITIESAMOUNT
ASSETSAMOUNT
2008 2007 2008 2007
Capital:-Capital contributed
by govt of India
-Subscribed capital bygovt of India
250000.00
243747.20
250000.00
239245.88
Fixed Assets:At written down
value35171.15 35304.76
Secured Loans:-Loans from
Scheduled banks and
State Bank of India-Long term borrowings
through GOIguaranteed bonds
3052998.5
2
402350.00
2516262.04
-
Loans andAdvances: 46.27 46.27
Unsecured Loans-Loan from Housing
Development FinanceCorporation
-Loan from Bank of
India
524.98
5625.00
730.62
7125.00
Other Loans and
Advances:Other advances
including advances to
staff
7962.19 30560.87
Current liabilities
& provisions.-Sundry Creditors
(Goods & finance)
-Service PriceEqualization Fund
-Deposits Repayable
274849.2
35699.21
82200.43
392748.84
391059.83
4184088
130281.94
563159.65
Claim
Receivables75520.50 5488413
Deposits and
Other
Receivables
33076.96 13446.42
Interest
Receivables
16313.36 14175.36
Current Assets-Cold chains
-low height cont.-By Products
- fast track cargoes
- Stores & Spares
-Stocks of
undelivered cargo
1282991.8
3103.4
1.01
34897.20
2759.42135.71
1323888.1
1230565.65
2231.63
1.01
25942.23
3417.5379.01
1262236.4
Interest Payable 3457.53 3413.91
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UnregularisedTransit & Storage
45336.12 53288.32
Balance CarriedForward
410452.07 3329937.1Balance Carried
Forward1537314.7 1463942.6
LIABILITIESAMOUNT
ASSETSAMOUNT
2008 2007 2008 2007
Balance Brought
Forward410452.07 3329937.1
Balance Brought
Forward1537314.7 1463942.6
Book Debts:-Outstanding formore than 6 months
-Other debts
1949084.25
492337.88
1616032.66
244865.69
2441422.1 1860898.3
Cash & Bank
Balances:-Cash in hand
-Cheques, Demand
Draft & Fixed
Deposits
5.37
85837.41
5.13
2913.40
85842.78 2918.53
MiscellaneousExpenditure &
Losses
1.07 1.07
Deferred Revenue
Expenses34694.82
_
Profit &LossAccount
2176.53 2176.53
Total 410452.07 3329937.1 Total 410452.07 3329937.1
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APPENDIX B
PROFIT AND LOSS ACCOUNT
For the year ended 31 March 2008 & 31 March 2007(Figures in Lakhs of Rupees)
PARTICULARSAMOUNT
2008 2007
Opening Stock:-Low height containers
-Unused inventory
-By Products & other commodities-
-Stores & Spares
1230565.08
2231.63
1.01
25942.23
3417.53
1755049.19
4983.60
3.06
25749.29
4678.60
1262157.48 1790463.74Purchases:
-Low height container- Fast track rail routes
-fuel
-Stores &Spares
3585829.19
18906.53
86953.02
1550.65
3714336.82
11987.40
109727.15
1382.82
3693239.39 3837434.19
Low containers (imported):Cold chains(including freight) 1.04 18.20
Milling charges paid to other
agencies (Net) 2826.04 2838.23Handling Expenses (Include
wages to departmental labour)135855.75 129244.26
Freight:
-Railway Freight-Lorry Freight
-Steamer Freight
-Transport Subsidy
257957.71
36196.28
730.70
14362.78
280014.46
45778.92
613.93
43875.48
309247.47 370282.79
Salaries, Wages and Allowances;
-Officers-Staff
-Less: capitalized
30843.11
103447.27
114.60
22252.48
88304.09
193.83
134175.78 110362.74
Medical reimbursement:-Officers
-Staff
876.43
3174.27
626.36
2524.16
4050.70 3150.52
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Medicines & Medical Equipments4.38 4.28
Balance Carried Over5541558.03 6243798.95
PARTICULARSAMOUNT
2008 2007Balance Brought Forward
5541558.03 6243798.95
Contribution to Provident Fund &
others17530.26 17211.23
Staff Welfare Expenses1748.16 1764.92
Rates & Taxes799.16 1153.36
Insurance34.64 34.64
Power, Fuel & Electricity 1295.94 1284.23
Rent:-Godowns
-Offices & others
47787.91
1137.70
32233.58
1222.50
48925.61 33456.08
Traveling Expenses2639.58 2630.66
Audit Fee & Traveling Expenses333.20 909.58
Fees & Traveling Expenses of
Directors
2.96 1.97
Repairs & Maintenance-Godowns-Others
2509.132752.88
2113.932188.39
5262.01 4302.32
Maintenance of Vehicles199.10 192.59
Interest260000.60 237758.04
Public Relations & Publicity36.33 205.50
Miscellaneous Expenses 13940.15 14481.79
Debts/Claims Written Off490.94 412.15
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Depreciation
4531.12 3484.44
Total 5899327.79 6563082.17
PARTICULARS
AMOUNT
2008 2007
Sales:-Low height container
-Fast track cargoes
-By Products & other commodities
-Cold chains
-Stores & Spares
2416023.84
17377.19
-554.11
19.38
2433974.52
3099903.66
14367.64
1.03
641.614.04
3114917.98
Closing Stocks:
-Low height containers-
-By Products & Other commodities
-Gunnies-Stores & Spares
1282991.823103.04
1.01
34897.20
2759.42
1230565.082231.63
1.01
25942.23
3417.53
1323752.49 1262157.48
Claims:-Railways
-Shipping
1540.20
-2171.62
12.13
1540.20 2183.75
Consumer Subsidy on CargoesAdd: carrying charges of buffer stocks of
FreightLess: adjustment relating to previousyears
1971087.86
126149.39
23357.78
1891429.44
257460.17
-832.89
2073879.47 2148056.72
Unregularised Transit and storage
shortages
(Reimbursable by department of foodand public distribution)
3480.40 10671.19
Short realization on Fast trackoperations.
3374.02 2248.29
Miscellaneous income32523.21 19956.70
Adjustments relating to previousyears.
23358.54 583.38
Interest received3440.98 2290.28
Foreign Exchange variance3.96 16.40
Total5899327.79 6563082.17
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APPENDIX-C
Cash flow StatementFor the year ended 31 March 2008 & 31 March 2007
(Figures in Lakhs of Rupees)
PARTICULARSAMOUNT
2008 2007
Cash flow from Operating Activities:
Net Profit during the year
Adjustments for:
Depreciation
Interest ExpenseInterest IncomeDebts written off
Foreign exchange Variance
0.00 0.00
4531.12 3484.44
260000.60 237758.04-3440.98 -2290.28
490.94 412.15
-3.96 -16.40
Operating Profit before working
capital changes261577.72 239347.95
Decrease in working capital:
Decrease in unregularised shortages 7952.20 3153.10
Increase in working capital:
Decrease in cargo Price Equalization
Fund
Decrease in sundry creditorsIncrease in Loans & Advances, deposits
& other claim receivables
Decrease in Deposits RepayableIncrease in Stocks
Increase in Book Debts
Increase in Miscellaneous Expenditure& Losses
-6141.67 -2960.63
-116638.12 -53367.79
-17668.23 -18806.59
-48081.51 -30427.77
-61651.70 528380.59
-581014.72 -325649.03
-34694 0.09
Net cash generated from Operating
Activities-596360.85 339669.83
Cash flow from Investing Activities:Sale of fixed assetsPurchase of fixed assets
139.12 29.19
-4082.18 -6025.46
Net cash used in Investing Activities -3943.06 -5996.27
Cash flow from Financing Activities:
4501.32 3946.00
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Increase in capital subscribed by
Government of IndiaIncrease in Loans & Advances from
Banks
Net outflow on Interest
Repayment of loans to HDFC
536736.48 -357265.52
-258654.00 -247976.28
-205.64 -162.99
2008 2007
Loans taken from Bank of India -1500.00 7125.00
Funds raised through issue of Bonds 402350.00 0.00
Net cash used in Financing Activities 683228.16 -594333.79
Net increase in cash & cash
equivalents82924.25 -260660.23
Cash & cash equivalents at the
beginning of the year2918.53 263578.67
Cash & cash equivalents at the end of
the year85842.78 2918.53