ROSHNI PROJECT REPORT NEW AS PER SECONDARY DATA.doc

8/18/2019 ROSHNI PROJECT REPORT NEW AS PER SECONDARY DATA.doc

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A PROJECT

ON

WORKING CAPITAL MANAGEMENT OF RIL & CUSTOMER PREFERENCE

TOWARDS RELIANCE COMMUNICATIONS

Submitted In Partial Fulfillment Of The Requirements For The Award Of Degree Of

MASTER OF BUSINESS ADMINISTRATION

(20!"20#$

Under the Guidane !"# Su$%itted $#

Mr'( GAGANDEEP KAUR ROS)NI SING)

*ASSISTANT PROFESSOR+ MBA ,ND -EAR

Kan.ur In'titute !" Tehn!/!01 R!// n!( 2 343567889,

R!!%a1 Kan.ur : ,89883

KANPUR INSTITUTE OF TEC)NOLOG-1 KANPUR

AFFILIATED TO UPTU2LUCKNOW


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ACKNOWLEDGMENT

“Knowledge is an experience gained in life, it is the choicest possession, which should not be

shelved but should be happily shared with others”.

No work in this world can be completed successfully if guidance is not provided in the right

direction. In this regard, I express my gratitude to my esteemed mentor, Mrs. AMITA ANI for

her valuable criti!ues, assistance and encouragement, which enabled me to carry on the pro"ect

successfully. I thank her for giving me a wonderful opportunity to work on this pro"ect. #er time$

to$time guidance and incessant support helped me to broaden my outlook on the pro"ect I am

highly obliged for their support throughout the preparation of this pro"ect. I would also like to

thank Mr. %eepak &uri for providing company details like Annual 'tatements and some more

valuable information and guidance. (ast but not the least I would also like to thank the

respondents who spared their valuable time to fill the !uestionnaire.

I would like to thank all for giving their valuable inputs and time.


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DECLARATION

This is to state that the &ro"ect titled ;WORKING CAPITAL MANAGEMENT OF RIL &

CUSTOMER PREFERENCE TOWARDS RELIANCE COMMUNICATIONS


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E=ECUTI>E SUMMAR-

It gives me an immense pleasure in presenting this final pro"ect report on *WORKING CAPITAL

MANAGEMENT OF RIL & CUSTOMER PREFERENCE TOWARDS RELIANCE

COMMUNICATIONS+ for the partial fulfillment of the degree of Masters of usiness

Administration -//0$1/2. This report gives the reader an overview of the concept of working

capital in the simplest language as far as possible. It also gives information on the working

capital management of eliance Industries (imited and customer preference towards eliance

3ommunications.

The result is purely based on a complete survey carried out for the pro"ect. oth Primary Data

i.e. by exploratory research, information from residents of sector 0 and 4, 3handigarh and people

coming to recharge dealers in sector 0 and Secondary Data i.e. by annual reports, newspapers,

maga5ines and scheme brochures. To make the report simpler and easier to understand graphs,

pie$ charts, tables and 3hi$'!uare Test are used wherever possible and interpretation of the same

has been given.

'pecial care has been taken to ensure that this report is free of any printing mistakes but I

apologi5e if any printing error creeps in. At the end, I hope this report fulfills its purpose by

providing an in$depth knowledge of mutual funds.


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C)APTER NUMBER NAME OF T)E C)APTER

C)APTER 3 INT6%73TI6N

C)APTER ,

89I8: 6; T#8 (IT8AT78

C)APTER ?

8'8A3# M8T#6%6(678'


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W)AT IS WORKING CAPITAL

;ixed 3apital is that part of which is re!uired for the purchase of fixed assets like (and

and uilding , &lant and machinery etc. The fixed capital provides the basic means for the

business to earn its return... ut by themselves, these fixed assets would not produce anything. ;or

instance, to operate the machines, we re!uire men, materials, power, tools, accessories etc. These

factors involve expenses. In addition, we have to maintain certain current assets like stocks, stores,

e!uipments, etc. All these re!uire enough resources to keep the wheels of the business in motion.

Therefore, in addition to the amount of fixed capital every business ? whether new or growing

re!uires %or&ing 'aital) :orking 3apital is that portion of a business concern@s total capital,

which is employed in term of operations. :ithout working capital, fixed capital would be idle and

ineffectual.

A number of definitions have been formulated perhaps the most widely acceptable would be

*%OR*I+, 'APITA- reresents the e./ess of 'RR1+T ASS1TS oer 'RR1+T

-IA3I-ITI1S4)

The same may be designated in the following e!uation

!"K#$% &'P#(')* &+""$( 'SS(S - &+""$( )#'#)#(#S 5

;unds thus invested in current assets keep revolving fast and are being constantly converted in to

cash and this cash flows out again in exchange for other current assets. Thus it is known asrevolving or circulating capital or short term capital.

WORKING CAPITAL MANAGEMENT

:orking 3apital Management refers to management of current assets and current liabilities. The

ma"or thrust of course is on the management of current assets. This is understandable because

current liabilities arise in the context of current assets. :orking 3apital Management is a

significant fact of financial management. Its importance stems from two reasons$ Inestment in /urrent assets reresents a substantial ortion of total inestment)

Inestment in /urrent assets and the leel of /urrent liabilities hae to be geared qui/&l6 to

/hange in sales) To be sure7 fi.ed asset inestment and long term finan/ing are resonsie

to ariation in sales) 8oweer7 this relationshi is not as /lose and dire/t as it is in the


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/ase of wor&ing /aital /omonents)

The importance of working capital management is effected in the fact that financial managers

spend a great deal of time in managing current assets and current liabilities. Arranging short term

financing, negotiating favorable credit terms, controlling the movement of cash, administering the

accounts receivable, and monitoring the inventories consume a great deal of time of financial

managers.

The problem of working capital management is one of the *best+ utili5ation of a scarce resource.

Thus the "ob of efficient working capital management is a formidable one, since it depends upon

several variables such as character of the business, the lengths of the merchandising cycle, rapidity

of turnover, scale of operations, volume and terms of purchase B sales and seasonal and other

variations.

T-PES OF WORKING CAPITAL

:orking 3apital may be classified in to two ways

a$ 6n the basis of concept.

b$ 6n the basis of time.

I + ON T)E BASIS OF BALANCE S)EET CONCEPT

Gr!'' !rin0 a.ita/ is the total of all current assets.


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Net !rin0 a.ita/ is the difference between current assets and current liabilities.

Though the later concept of working capital is commonly used it is an accounting concept

with little sense to say that a firm manages its net working capital. :hat a firm really does is

to take decisions with respect to various current assets and current liabilities. The constituents

of current assets B current liabilities are shown in table A.

TABLE A#

C!n'tituent' !" Current A''et' and Current Lia$i/itie'

PART :A# CURRENT ASSETS

Inventories ? aw materials and components, :ork in progress,

;inished goods, other.

Trade %ebtors.

(oans and Advances.

Investments.

3ash and ank balance.

PART :B# CURRENT LIABILITIES

'undry 3reditors.

Trade Advances.

orrowings.

&rovisions.

II+ ON T)E BASIS OF TIME#

Per%anent !r Fied W!rin0 Ca.ita/#

&ermanent or ;ixed :orking capital is the minimum amount which is re!uired to ensure effective

utili5ation of fixed facilities and for maintaining the circulation of current assets. There is always a

minimum level of current assets that is continuously re!uired by the enterprise to carry out its

normal business operation. ;or example every firm has to maintain minimum level of raw

materials, work in process, furnished goods and cash balance. The minimum level of current


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assets is called permanent or fixed working capital as their part of working capital is permanently

blocked in current assets. :ith the growth of business there is an increase in current assets.

Te%.!rar !r >aria$/e W!rin0 Ca.ita/#

Temporary or 9ariable :orking 3apital is the amount of working capital that is re!uired to meet

the seasonal demands and some special exigencies. 9ariable working capital can be further

classified as$

a2 'easonal :orking 3apital.

b2 'pecial :orking 3apital.

Most of the enterprises have to provide additional working capital to meet the special and seasonal

needs. The capital re!uired to meet the seasonal needs of enterprise is called Sea'!na/ !rin0

a.ita/. 'pecial working capital is the part of working capital which is re!uired to meet the

special exigencies such as part of working capital which is re!uired to meet special exigencies

such as launching of extensive marketing campaigns for conducting research etc. is called S.eia/

!rin0 a.ita/(

FACTORS DETERMINING WORKING CAPITAL REUIREMENTS

:ith the type of business and the ambition of proprietors the amount is bound to vary. ;or

instance, a small business would need lesser amount of working capital than a larger business

engaged in the same line. As the business expands the amount needed would grow. 'imilarly,

business with seasonal demand would re!uire larger amount of working capital. Therefore, an

estimate of re!uirements of working capital will differ from concern and from industry to industry.

;urther, cyclical changes, periods of prosperity and depression cause wide variations in the

demand for working capital. 6ther unexpected happenings are likely to create unusual demands

for working capital.

There is no concrete formula to decide the amount of workings capital re!uired by a business.

There are also business in which fixed is small in relation to working capital.

The Ma"or determinants of the proportion of fixed to working capital are as follows

Nature !" Bu'ine'' #

usiness units selling service -like public utilities2 instead of a commodity, have little need for

working capital, as they have little demand for large inventories.


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and prepaid basis. ut trading concerns -merchandising companies2 make a greater use of working

capital, since inventory represents a ma"or item of investment. A relatively small proportion will

consist of working capital in case of manufacturing concerns. (arger working capital will re!uire

in labor intensive industries than in highly mechani5ed industries. In chemical or engineering

industries, working capital would be relatively larger.

Sie !" Bu'ine'' #

The working capital re!uirements of a concern are directly influenced by the si5e of the business

which may be measured in terms of scale of operations.


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W!rin0 Ca.ita/ C/e #

In manufacturing concern, working capital cycle starts with the purchase of raw materials and

ends with reali5ation of cash from the sale of finished goods. The cycle involves the purchase of

raw materials and ends with the reali5ation of cash from the sale of finished products. The cycle

involves purchase of raw materials and stores, its conversion in to stock of finished goods through

work in progress with progressive increment of labor and service cost, conversion of finished stick

in to sales and receivables and ultimately reali5ation of cash and this cycle continuous again from

cash to purchase of raw materials and so on.

Maret C!nditi!n #

The degree of competition prevailing in the market places has an important bearing on working

capital needs. :hen competition keen, a larger inventory of finished goods is re!uired to promptly

serve customer who may not be inclined to wait because other manufacturers are ready to meet

their needs, further, generous credit terms may have to be offered to attract customers in a highly

competitive market. Thus, working capital needs tends to be high because of greater investment in

finished goods inventory and accounts receivable.

If the market is strong and completion weeks a firm can manage with a smaller inventory of

finished goods because customers can be served with some delay. ;urther in such situation the

firm can insist on cash payment and avoid lock ? up of funds in accounts receivable, it can evenask for advance payment, partial or total.

Credit P!/i #

The credit policy is concerned in its dealings with debtors and creditors influence considerably the

re!uirements of the working capital. A concern that purchases its re!uirements on credit and sells

its productsCservices on cash re!uires lesser amount of working capital. 6n the other hand a

concern buying its re!uirements for cash and allowing credit to its customers, shall need larger

amount of funds are bound to be tied up in debtors or bills receivables.

Bu'ine'' C/e #

usiness 3ycle refers to alternate expansion and contraction in general business activities. In a

period of born i.e. when the business is prosperous there is a need for larger amount of working


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capital due to increase in sales, rise in prices, optimistic expansion of business etc. 6n the country

at the time of depression i.e. when there is a down swing of the cycle, business contracts, sales

decline, difficulties are faced in collections from debtors and firms may have a large amount of

working capital lying ideal

Rate !" Gr!th O" $u'ine'' #

The working capital re!uirements of a concern increase with the growth and expansion of its

business activities. Although it is difficult to determine the relation between growth in the volume

of the business and in the growth of the working capital of the business, yet it may be concluded

that for normal rate of expansion in the volume of the business, we may have retained profits to

provide for more working capital but in the first growing concerns, we shall re!uire larger amount

of capital.

Earnin0 Ca.ait And DiHidend .!/i #

'ome firms have more earning capacity than others due to the !uality of their products, monopoly

conditions etc. 'uch firms with high earning capacity may generate cash profits from operations

and contribute to their capital. The dividend policy of a concern also influences the re!uirements

of the working capital. A firm that maintains steady high rate of cash dividend irrespective of its

generation of profits needs more capital than the firm retains larger part of its profits and does not pay high rate of cash dividend.

Prie LeHe/ Chan0e' #

3hanges in the prices level also effects the working capital re!uirements.


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3ertain other factors such as operating efficiency, management ability, irregularities a supply,

import policy, asset structure, importance of labor, banking facilities etc. also influences the

re!uirement of working capital.

FINANCING OF WORKING CAPITAL

The working capital re!uirements of a business concern can be classified as$

a2 &ermanent or ;ixed working capital re!uirements.

b2 Temporary or variable capital re!uirements.

In concern, a part of working capital investments are as permanent investment in fixed assets. This

is so because there always a minimum level of current assets which are continuously re!uired by

the enterprise to carry out its day$to$day business operations and this minimum cannot be

expected to reduce at any time. This minimum level of current assets gives rise to permanent or

fixed working capital as this part of working capital is permanently blocked in current assets.

'imilarly some amount of working capital may be re!uired to meet the seasonal demands and

some special exigencies such as rise in prices, strikes etc. this proportion of working capital gives

rise to temporary or variable working capital which cannot be permanently employed gainfully in

business.

The fixed proportion of working capital should be generally financed from the fixed capital

sources while the temporary or variable working capital re!uirements of a concern may be met

from the short term sources of capital. The various sources for the financing of working capital

are$

PERMANENT OR FI=ED SOURCES OF WORKING CAPITAL

12 'hares

2 %ebentures

D2 &ublic %eposits

E2 &loughing back of profits

F2 (oans from financial institutions

TEMPORAR- OR >ARIABLE SOURSES OF WORKING CAPITAL

12 3ommercial banks


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2 Indigenous bankers

D2 Trade creditors

E2 Installment credit

F2 Advances

G2 Accounts receivable$ creditCfactoring

H2 Accrued expenses

02 3ommercial paper

3ommercial banks are the most important sources of short term capital. The ma"or portions of

working capital loans are provided by commercial banks. They provide of wide variety of loans

tailored to meet the specific re!uirements of a concern. The different forms in which the banks

normally provide loans and advances are as follows$

a2 (oans

b2 3ash credits

c2 6verdrafts

d2 &urchasing and discounting of bills

In addition to the above mentioned forms of direct finance, commercial banks help their

customers in obtaining credit form their suppliers through the letter of credit arrangements.

It is always a test to the prudence of a financial manager to obtain the correct amount of working

capital at the right time, at a reasonable cost and at the most favorable terms.

• MANAGEMENT OF IN>ENTOR-

• MANAGEMENT OF CAS)

• MANAGEMENT OF RECEI>ABLES

• MANAGEMENT OF IN>ENTOR-

Inventories constitute the most significant part of current assets of a large ma"ority of companies

in India. 6n an average, inventories are approximately G/ of current assets in public limitedcompanies in India.

ecause of the large si5e of inventories maintained by firms maintained by firms, a considerable

amount of funds is re!uired to be committed to them. It is, therefore very necessary to manage

inventories efficiently and effectively in order to avoid unnecessary investments. A firm


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neglecting a firm the management of inventories will be "eopardi5ing its long run profitability

and may fail ultimately.

The purpose of inventory management is to ensure availability of materials in sufficient !uantity

as and when re!uired and also to minimi5e investment in inventories at considerable degrees,

without any adverse effect on production and sales, by using simple inventory planning and

control techni!ues.

• MANAGEMENT OF CAS)

3ash is the important current asset for the operation of the business. 3ash is the basic input needed

to keep the business running in the continuous basis, it is also the ultimate output expected to be

reali5ed by selling or product manufactured by the firm.

The firm should keep sufficient cash neither more nor less. 3ash shortage will disrupt the firm@s

manufacturing operations while excessive cash will simply remain ideal without contributing

anything towards the firm@s profitability. Thus a ma"or function of the financial manager is to

maintain a sound cash position.

3ash is the money, which a firm can disburse immediately without any restriction. The term cash

includes coins, currency and che!ues held by the firm and balances in its bank account.

'ometimes near cash items such as marketing securities or bank term deposits are also included in

cash.


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Speculative /otive0 1 The speculative motive relates to the holding of cash for investing in profit

making opportunities as and when they arise.

The opportunities to make profit changes. The firm will hold cash, when it is expected that interest

rates will rise and security price will fall.

• MANAGEMENT OF RECEI>ABLE

A sound managerial control re!uires proper management of li!uid assets and inventory. These

assets are a part of working capital of the business. An efficient use of financial resources is

necessary to avoid financial distress. eceivables result from credit sales. A concern is re!uired to

allow credit sales in order to expand its sales volume. It is not always possible to sell goods on

cash basis only. 'ometimes other concern in that line might have established a practice of selling

goods on credit basis. 7nder these circumstances, it is not possible to avoid credit sales without

adversely affecting sales. The increase in sales is also essential to increases profitability. After a

certain level of sales the increase in sales will not proportionately increase production costs. The

increase in sales will bring in more profits. Thus, receivables constitute a significant portion of

current assets of a firm. ut for investment in receivables, a firm has to insure certain costs.

;urther, there is a risk of bad debts also. It is therefore, very necessary to have a proper control

and management of receivables.

O.eratin0 /e

6perating cycle refers to the time duration re!uired to convert sales ,after the conversion of

recourses into inventories, into cash .the operating cycle of a manufacturing company like I(

includes

1.2 Ac!uisition of resources such as raw materials, labor, power and fuel etc.

.2 Manufacture of the product which includes conversion of materials into work$in$progress into

finished goods.

D.2 'ale of the product either for cash or on credit. 3redit sales create account receivables for

collection.


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COMPONENTS OF WORKING CAPITAL ARE CALCULATED AS FOLLOWS

23 Ra Materia/' St!ra0e Peri!dJAvarage stock of raw materialsCAvarage cost of raw material

consumption per day.

4.3 1#1P 5olding period* Aerage w"i" in inentor69Aerage /ost of rodu/tion er da6)

6.3 Stores and spares conversion period* Average stock of Stores and sares9 Avarage

consumption per day.

7.3 8inished goods conversion period* Aerage stock of finished goodsCAvarage cost of of

goods sold per day.

9.3 Debtors collection period* Aarage boo& debts9Aarage /redit sales er da6)

:.3 &redit period availed* Aarage trade /reditors9Aerage /redit ur/hase er da6)

SIGNIFICANCE OF WORKING CAPITAL


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ABOUT TELECOM INDUSTR-

W!r/d te/e!% indu'tr is an uprising industry, proceeding towards a goal of achieving twothird of the worldKs telecom connections. 6ver the past few years information and

communications technology has changed in a dramatic manner and as a result of that world

telecom industry is going to be a booming industry. 'ubstantial economic growth and mounting

population enable the rapid growth of this industry. The world telecommunications market is

expected to rise at an 11 percent compound annual growth rate at the end of year /1/. The

leading telecom companies like ATBT, 9odafone, 9eri5on, '3 3ommunications, ell 'outh,

Lwest 3ommunications are trying to take the advantage of this growth. These companies are

working on telecommunication fields like broadband technologies, 8%


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8conomical aspect of telecommunication industry :orld telecom industry is taking a crucial

part of world economy. The total revenue earned from this industry is D percent of the gross

world products and is aiming at attaining more revenues. 6ne statistical report reveals that

approximately 1G.4 of the world population has access to the Internet.

&resent market scenario of world telecom industry 6ver the last couple of years, world

telecommunication industry has been consolidating by allowing private organi5ations the

opportunities to run their businesses with this industry. The


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F. To accelerate broadband penetration

G. 7niversal service to all uncovered areas including rural areas.

H. 8nabling Indian telecom companies to become global players.

Reent thin0' t! ath in Indian te/e!% 'et!r are#

1. D< and :A auctions

. M9N6

D. Mobile Number &ortability

E. New &olicy for 9alue Added 'ervices

F. Market dynamics once the recently licensed new telecom operators start rolling out

G. 'ervices.

H. Increased thrust on telecom e!uipment manufacturing and exports.0. eduction in Mobile Termination 3harges as the cost per line has substantially reduced

4. %ue to technological advancement and increase in traffic.

IndiaKs telecom sector has shown massive upsurge in the recent years in all respects of industrial

growth. ;rom the status of state monopoly with very limited growth, it has grown in to the level

of an industry. Telephone, whether fixed landline or mobile, is an essential necessity for the

people of India. This changing phase was possible with the economic development that followed

the process of structuring the economy in the capitalistic pattern. emoval of restrictions on

foreign capital investment and industrial de$licensing resulted in fast growth of this sector. At

present the countryKs telecom industry has achieved a growth rate of 1E per cent. Till ///,

though cellular phone companies were present, fixed landlines were popular in most parts of the

country, with government of India setting up the Telecom egulatory Authority of India, and

measures to allow new players country, the featured products in the segment came in to

prominence. Today the industry offers services such as fixed landlines, :((,


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Indian Telecom sector, like any other industrial sector in the country, has gone through many

phases of growth and diversification. 'tarting from telegraphic and telephonic systems in the

14th century, the field of telephonic communication has now expanded to make use of advanced

technologies like


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3ommenting on the results for //$//D, Mr. Mukesh Ambani, 3hairman, said *we are

delighted with the complete turnaround in I&3(@s performance in the very first year of

ac!uisition by reliance. The successful absorption of eliance@s best practice by I&3( in all

areas of operations, and positive impact of measures introduced for cost reduction and

productivity and efficiency gains. :e have great confidence in the capabilities of I&3( and its

people, and are confident of further improvement in the company@s performance in the future+.

MISSION & >ISION

*3ontinuously innovate to remain &artners in human progress by #arnessing science B

technology in the petrochemicals domain+

OUR MISSION

*e a globally preferred usiness associate with responsible 3oncern for ecology, society, And

stakeholder@s value+.

>ALUES & UALIT- POLIC-

OUR >ALUES

*Integrity, espect for &eople, 7nity of &urpose, 6utside$in ;ocus, Agility and Innovation+.

UALIT- POLIC-

*are committed to meet customers@ re!uirements through continual improvement 6f our !uality

management systems. :e shall sustain organi5ational excellence through visionary leadership

and innovative efforts+.

)IG)LIG)TS*,88928@+


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Turn!Her s 1,EG,D0 crore - 0,0F/ million2

PBDIT s F,HED crore - F,/HG million2

Ca'h Pr!"it s ,DGF crore - E,E1/ million2

Net Pr!"it s 1F,D/4 crore - D,/10 million2

Net Pr!"it *e/( ee.ti!na/ ite%2 s 1F,GDH crore - D,/0D million2

Net Pr!"it 6 ear' CAGR F

T!ta/ A''et' s. ,EF,H/G crore - E0,EEE million2

SIGNIFICANT CONTRIBUTION TO INDIA


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The first logo, which consisted of a tetrahedron $ representing the

molecular structure of the simplest organic chemical, methane $ in a circle.

This decision of the government, *8very thing under one roof+ inspired

the second logo of I&3(. I&3( took up the challenge of setting up the entire integrated complex

at 9adodara.

I&3(, as a corporate entity, is and what it shall strive to be. Thissymbol, or logo, reflects what I&3( is a single matrix of the manyO a diversity of activities and products, emerging from one sourceand branching out in different directions, yet retaining itsunity and identity. The lines flow upwards and outwards from a common base into infinity,reaching for unending growth, universal goodwill, general prosperity and excellence ineverything. The green colour used in the design reinforces the theme $ aspiration and growth,rooted in the earth and in harmony with the other elements $ water, light, air and space


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The government of India handled over management control to eliance group on une E, //,since then the company is being managed by reliance.

RIL MILESTONE

-EAR E>ENTS14G4 I&3( was incorporated under company act.

14H/ 3onstruction of our first &etrochemicals complex commenced at 9adodara,


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GROWT) T)ROUG) C)ALLENGES

(ife at eliance is challenging, fulfilling and excitingP eliance offers access to world$class

resources for personal and professional growth. At eliance, youKll have the chance to take on

challenging responsibilities, working with top$notch, world$class professionals from around theglobe. =ou will be part of a culture of excellence. &eople are central to elianceKs growth

strategy. A large in$house pool of intellectual capital is the driving force behind elianceKs rapid

growth, and is one of its competitive advantages. eliance is a young company, with an average

age of D4 years. Talent is drawn from diverse academic and professional backgrounds.

:orld$class exposure, growth opportunities and competitive compensation packages offered by

eliance enables it to attract and retain excellent talent.

eliance targets the world market for talent, provides global perspectives and has a large number

of expatriates on its rolls. eliance endeavours to create a workplace where every person can

reach his or her full potential.

Gr!th i' are "!r 0!!d hea/th

elianceKs occupational health centres carry out pre$employment and periodic medical checkups

as well as other routine preventive services. 'pecialised tests like biological monitoring, healthrisk assessment studies and audits for exposure to various materials are also performed. #ealth

education and awareness form an integral part of the health care programme at eliance.

Gr!th i' are "!r 'a"et

:e believe that the safety of each employee is the responsibility of the individual as well as of

the whole community of employees.

Gr!th i' are "!r the enHir!n%ent

eliance believes that a clean environment in and around the workplace fosters health and

prosperity for the individual, the group and the larger community to which they belong.


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8nvironmental protection is an integral part of the planning, design, construction, operation and

maintenance of all our pro"ects.

Gr!th i' $ettin0 !n !ur .e!./e

eliance builds with care a workplace that proactively fosters professional as well as personal

growth. There is freedom to explore and learnO and there are opportunities that inspire initiative

and intrinsic motivation. :e believe that people must dream to achieve, that these dreams will

drive the companyKs excellence in all its businesses. eliance thinks, behaves, lives and thrives

with a global mindset, encouraging every employee to reach his C her full potential by availing

opportunities that arise across the group.

Gr!th i' thinin0 $e!nd $u'ine''

As corporate citi5ens, we invest in social infrastructure, believing strongly that our business

strength fuels our social contributions. To this end, eliance encourages, funds and develops

numerous education, health, human capital and infrastructure initiatives. These initiatives are

undertaken through partnerships with non$governmental organi5ations, corporate and trusts.

;or those who study innovative organi5ations eliance Industries will be a shining example of

how innovation is practised in almost everything that they do. #ere are few things that set themapart

• I%.!''i$/e i' an in'.irin0 !rd $ Nothing turns on the leadership at eliance

Industries than this magical word. Again to !uote the amnagar example, it was

considered impossible to turn a barren land into a greenbelt. Today mangoes grown in

amnagar are sold in #arrods (ondon.

• )and' !n thinin01 hand' !"" eeuti!n( $ It is characteristic of eliance leadership.

They think everything through and meticulous planning is their hall mark. :hen it comes

to execution empowerment delegation down to the last employee in the chain is clearly

demonstrated.

• Fir't ti%e it i' /earnin0( Se!nd ti%e it i' a %i'tae( $ Mistakes are never frowned

uponO instead they are treated as a learning opportunity. It is one such mistake converted


29/100

to learning that created the worldKs largest K3raft 3entreK located at amnagar.

3umulatively it has trained 1, F/,/// workmen $ electricians, welders, carpenters.

• Sen'e !" ur0en $ eliance speed is legendary now. eliance has mastered pro"ect

management skills and has made it virtually into a fine art. It is this sense of speed that

restored operations in record time in amnagar, &atalganga and #a5ira after being

affected by cyclones and floods.

• Thin( Antii.ate( Be .re.ared( &art of meticulous thinking is the ability to

anticipate problems. Q8very transformation initiative will face resistance. It is our "ob to

anticipate the resistance, take the responsibility to earn the respect of all stakeholders to

create a win$win business model.Q

• Drea%' and >i'i!n are the %!'t .!tent "ue/' in the !r/d( $ This is an unmistakable

eliance hallmark espoused both by the founder 3hairman 'h. %hirubhai Ambani and the

current 3hairman 'h. Mukesh Ambani. To a !uestion on what would be his next big

ambition 'h. Mukesh Ambani answered

• Rura/ tran'"!r%ati!n( $ 3reating direct employment for half a million people in rural

India. 3reating a supply chain that the world will envy.Q

• Mea'urin0 'ue'' di""erent/ $ %eveloping a metric to measure how much money

was spent, is "ust one example of inspiring people to think and act differently and

effectively.

It is evident that eliance Industries is where it is today because of Innovation in thinking and

execution.


30/100

The (ate %hirubhai Ambani dreamt of a digital India R an India where the common man would

have access to affordable means of information and communication. %hirubhai, who single$

handedly built India@s largest private sector company virtually from scratch, had stated as early

as 1444 *Make the tools of information and communication available to people at an affordable

cost. They will overcome the handicaps of illiteracy and lack of mobility.+

It was with this belief in mind that eliance 3ommunications -formerly eliance Infocomm2

started laying G/,/// route kilometers of a pan$India fiber optic backbone. This backbone was

commissioned on 0 %ecember //, the auspicious occasion of %hirubhai@s H/th birthday,

though sadly after his unexpected demise on G uly //.

eliance 3ommunications has a reliable, high$capacity, integrated -both wireless and wireline2

and convergent -voice, data and video2 digital network. It is capable of delivering a range of

services spanning the entire infocomm -information and communication2 value chain, including

infrastructure and services R for enterprises as well as individuals, applications, and consulting.

Today, eliance 3ommunications is revolutioni5ing the way India communicates and networks,

truly bringing about a new way of life.


31/100

RE>EIEW OF LITERATURE FOR WORKING CAPITAL

W!rin0 a.ita/ .!/i re"er' t! the "ir%' .!/iie' re0ardin0 #

12 Target levels for each category of current operating assets and liabilities, and

2 #ow current assets will be financed.


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overall, between level of working capital and operating performance as measured by operating

returns and operating margins -&eterson and a"an, 144H2. 7nder conditions of certainty -i.e.

sales, costs, lead times, payment periods, and so on, are known2, firms have little reason to hold

more working capital than a minimum level. (arger amounts would increase the level of

operating assets, increase the need for external funding, resulting in lower return on assets and a

lower return on e!uity, without any increase in profit.

#owever the picture changes when uncertainty -i.e. uncertain growth2 is introduced -righam

and #ouston, ///2. (arger amounts of cash, securities, accounts receivables, marketable

securities, inventories, and fixed assets will be needed to support increased sales e!uired levels

will be based on expected sales levels and expected order lead times. Additional holdings may be

needed to enable the firm to deal with departures from the expected values. ;urther, firms willalso attempt to increase their accounts payable balances as a means of financing increased levels

of current operating assets. ;irms which are in high growth stages will face the challenge of

maintaining the necessary level of operating assets to support subse!uent growth, while at the

same time attempting to maintain ade!uate performance indicators.

Fr!% the a$!He reHie' it an $e !n/uded that %an re'earhe' haHe $een

!nduted $e"!re re/atin0 t! the !ne.t !" !rin0 a.ita/ $ut n! re'earhe'

haHe $een !nduted t! 'tud the !rin0 a.ita/ %ana0e%ent !" Re/iane

Indu'trie' Li%ited( Thi' 0a. ha' $een "u/"i//ed $ thi' re'earh re.!rt hih

0iHe' an .ratia/ in'i0ht int! the !ne.t !" !rin0 a.ita/ %ana0e%ent(

LITERATURE RE>IEW FOR TELECOM INDUSTR-

C0nu' Bu'ine'' C!n'u/tin0 & Re'earh PHt( Ltd( *,889+1 in its *&erformance Analysis of

3ompanies -April$une //02+ has analy5ed the Indian telecom industry in the awake of recent

global recession and its overall impact on the Indian economy. :ith almost F$Gmillion

subscribers are being added every month, and the country is witnessing wild momentum in the

telecom industry, the Indian telecom industry is expected to maintain the same growth tra"ectory.


33/100

• Internet 'erHie .r!Hider' in India1 Ra! *,888+1 provide a broad view of the role of an

Internet service provider -I'&2 in a nascent market of India. uilding local content,

foreknowledge of new Internet technologies, connecting issues, competitiveness, etc. would

help in their sustainability.

• The r!/e !" tehn!/!0 in the e%er0ene !" the in"!r%ati!n '!iet in India1 Sin0h

*,886+1 describes the role that information and communication technologies are playing for

Indian society to educate them formally or informally which is ultimately helping India to

emerge as an information society.

• T()( Ch!dar *3@@@+ discusses how Telecom reform, or demonopoli5ation, in India has

been bungled. 'haped by legislation dating back to the colonial era and post 'econd :orld

:ar socialist policies, by the mid$140/s India reali5ed that its poor telecommunications

infrastructure and service needed reform. At the heart of the problem lay the monopoly by the

government@s %epartment of Telecommunications -%6T2 in e!uipment, networks and

services. The National Telecom &olicy 144E spelt out decent ob"ectives for reform but

tragically its implementation was entrusted to the %6T. This created an untenable situation in

which the %6T became policymaker, licenser, regulator, operator and also arbitrator in

disputes between itself and licensed competitors. #e discusses the !uestion S:hy did India

get it so wrong and :hat India should do now

• Th!%a' *,887+1 in his article describes the contribution made by telecommunications in

India by the state and civil society to public service, this article aims to identify the state@s

initial reluctance to recogni5e telecommunications provision as a basic need as against the

robust tradition of public service aligned to the postal services and finds hope in the renewal

of public service telecommunications via the ight to Information movement. The article

follows the methodology of studying the history of telecommunications approach that is

conversant with the political economy tradition. It uses archival sources, personal

correspondence, and published information as its research material. The findings of the paper

suggests that public service in telecommunication is a relatively SSnew@@ concept in the annals

of Indian telecommunications and that a deregulated environment along with the ight to

Information movement holds significant hope for making public service telecommunications


34/100

a real alternative. The article provides a reflexive, critical account of public service

telecommunications in India and suggests that it can be strengthened by learning gained from

the continual renewal of public service ideals and action by the postal services and a people$

based demand model linked to the ight to Information Movement. All studies done by the

researcher suggests that the right to information movement has contributed to the

revitali5ation of participatory democracy in India and to a strengthening of public service

telecommunications.


35/100

million in India, according to a report by 7'$based research and consulting firm, 'trategy

Analytics.

9A(78$A%%8% '89I38' MA)8T

A report by market research firm IM stated that the mobile value$added services -M9A'2

industry was valued at 7' 1.1F billion in une //0, and is expected to grow rapidly at H/ per

cent to touch 7' 1.4G billion by une //4.

3urrently, M9A' in India accounts for 1/ per cent of the operatorKs revenue, which is expected

to reach 10 per cent by /1/. According to a study by 'tanford 7niversity and consulting firm

%A, the Indian M9A' is poised to touch 7' .HE billion by /1/.

Mobile advertising, which is an important 9A' segment, offers great potential to become an

important revenue source. Marketers are increasingly using M9A' as a step ahead of 'M'$based

marketing to sell soaps and shampoos, banking, insurance products and also entertainment

services, and rural markets are proving to be very receptive for such marketing.

;urther, 9enture 3apitalists like 3anaan &artners, %raper ;isher uvertson, #elion, and Nexus

India are also innovating with services like mobile payment options, advertising, voice$based

'M' and satellite video streaming.

According to 9enture Intelligence, there were nine deals worth 7' E1 million in //H in the

mobile 9A' space, and till August //0, seven deals worth 7' 41 million had already been

finali5ed. &resently, mobile 9A' has a 7' H// million market with a / per cent y$o$y growth,

which is likely to touch 7' D billion by /1.

Fr!% the a$!He reHie' it an $e !n/uded that %an re'earhe' haHe $een

!nduted $e"!re $ut n! re'earhe' haHe $een !nduted t! 'tud the

.er"!r%ane !" /eadin0 ./aer'( Thi' t!.i had $een h!'en ee.in0 in %ind

the inrea'in0 !%.etiti!n in te/e!% indu'tr and t! 'tud the .!'iti!n !"

Re/iane !%%uniati!n' a' !%.ared t! 4 !ther t!. ./aer'( Thi' 0a. ha'


36/100

$een "u/"i//ed $ thi' re'earh re.!rt hih 0iHe' a .ratia/ in'i0ht int! the

!ne.t !" !rin0 a.ita/ %ana0e%ent(


37/100

RESEARC) MET)ODOLOG-

;or every comprehensive research a proper research methodology is indispensable B it has to be

properly conceived. The methodology adopted by me is as follows$

C)APTER# ?*a+

RESEARC) PROBLEM

To know the working capital management of I( with the help of ratio analysis.

To analy5e the market strength of reliance communications.

C)APTER# ?*$+


38/100

)-POT)ESIS OF T)E STUD-

A research hypothesis is the statement created by a researcher when they speculate upon the

outcome of a research or experiment.

;or the study of customer preference towards eliance 3ommunications the following

hypothesis was set up.

• #/ There is no significant relationship between factors and satisfaction level.

• #1 There is significant relationship between factors and satisfaction level.

C)APTER ?*+

OBJECTI>ES OF STUD-• ;ind out atios related to working capital management of I( and compare with last F

years.

• ;ind deviation of calculated from standard or Norms.

• To study the customer preference towards reliance communications as compared to its

competitors namely Airtel, 9odafone, Idea, Tata %ocomo.

• To suggest measures to improve its market share and positioning.

C)APTER ?*d+

SCOPE OF STUD-

The scope of this study is to provide an insight into concept of working capital management and

illustrate it by actually working capital management of I(. This study also provides insight of

the customer preference of eliance 3ommunications and its market share as compared to Airtel,

9odafone, Idea, Tata %ocomo.

C)APTER ?*e+

RESEARC) DESIGN

According to 3lifford :oody, *research comprises defining and redefining problems,

formulating hypothesis or suggested solutionsO collecting, organi5ing and evaluating dataO

http://www.experiment-resources.com/what-is-research.htmlhttp://www.experiment-resources.com/experimental-research.htmlhttp://www.experiment-resources.com/what-is-research.htmlhttp://www.experiment-resources.com/experimental-research.html


39/100

making deductions and reaching conclusionsO and at last carefully testing the conclusions to

determine whether they fit the formulating hypothesis.

This research is divided in two parts

-i2 :orking 3apital Management through secondary data based on certain parametersO

-ii2 an exploratory research based on a survey of the concerning literature. A sample

survey was conducting with the help of 'cheduling Method of collecting data i.e.

personally the enumerator visited and got the !uestionnaires filled from the

respondents. The enumerator in this method helps the respondents in recording their

answers to various !uestions in the said schedules.

C)APTER ?*"+

SOURCES OF DATA

There are two types of data vi5. primary and secondary. The primary data are those which are

collected afresh and for the first time, and thus happen to be original in character.

The secondary data, on the other hand, are those which have already been collected by someone

else and which have already been passed through the statistical process.

;or this research report, primary data was collected through !uestionnaires from customers and

recharge dealers of sector 0 and 4 and there was no bias on the part of the enumerator while

selecting the sample for the analysis concerning eliance 3ompetitors.

'econdary data was used for the working capital management of I( that is company annual

reports, profit and loss account and balance sheet for the years //E$/F, //F$/G, //G$/H, //H$

/0, //0$/4, brochures from recharge dealers, maga5ines and newspapers.

C)APTER ?*0+

SAMPLE SIE

;or this research, in part one, a sample si5e of annual reports for F years //E$/F, //F$/G,

//G$/H, //H$/0, //0$/4 were taken.

;or the second part, a sample si5e of 1// respondents was taken out of the total customers using

mobile phones.


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C)APTER ?*h+

SAMPLE AREA

The sample area was 3handigarh and involved respondents coming to recharge dealers in sector

0 and 4 and the residents of sector 0.

C)APTER ?*i+

STATISTICAL TOOLS USED

The various statistical tool used were data distribution tables, graphs and pie charts. atio

analysis was used for determining the working capital management of I(. #ypothesis testing

through 3hi '!uare test was used in 3ustomer &reference Towards eliance 3ommunications.

C)APTER ?*+

LIMITATIONS OF T)E STUD-

F!//!in0 ere the /i%itati!n' !" the 'tud#

Time was limited.

The sample si5e of 1// is very small and more than that could not be possible.

The study was only based on the survey of respondents in 3#AN%I


41/100


42/100

*WORKING CAPITAL MANAGEMENT OF RIL+

&+""$( "'(#!

'D1(S( "'(#!

D(!"S (+"$!;" "'(#!

&"D#(!"S (+"$;!" "'(#!


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#$;$(!"< (+"$!;" "'(#!

$( !"K#$% &'P#(') "'(#!

D( &!))&(#!$ "'(#!

S('(/$( !8 "'(#! '$')


44/100

F!r the ear#

,889 2 8@ R'( F0HEG./H J 1.G11

R'( DFHFG.40

,887 2 89 R'( F1E00.0H J .141

R'( DE1H.F1

,885 2 87 R'( 441D.DF J 1.HH1

R'( 1G0GF.FD

,886 2 85 R'( EFHE.EF J 1.4G1

R'( 1FGD.F/

,884 2 86 R'( 0EF.F1 J .1E1

R'( 1D0D.4F

-EARS CURRENT RATIO

//0$/4 1.G11

//H$/0 .141

//G$/H 1.HH1

//F$/G 1.4G1

//E$/F .1E1


45/100

INTERPRETATION#

It is generally believed that 1 ratio shows a comfortable working capital position. The tendon

committee appointed by I had wide recommended a current ratio of 1.

3ompany has maintained this ration and increased it year by year. A current ratio is 1.G1 in the

current year. ut in the other year the ratio is nearer to 1 so we can say that the company

having comfortable working capital position.

ACID2TEST RATIO

The measure of absolute li!uidity may be obtained only cash and bank balance as well as only

ready marketable security with li!uid liabilities. This is every existing standard of li!uidity and it

is satisfaction if the ratio is 1.F/1.

F!r the ear#

,889 2 8@ R'( F0HEG./H ? /1/4.G1 J 1./01

R'( DFHFG.40

,887 2 89 R'( F1E00.0H $ 141G.1E J .141

R'( DE1H.F1


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,885 2 87 R'( 441D.DF ? 11DG.F1 J 1.D01

R'( 1G0GF.FD

,886 2 85 R'( EFHE.EF ? 1/114.0 J 1.1F1

R'( 1FGD.F/

,884 2 86 R'( 0EF.F1 ? HE1.00 J 1.F01

R'( 1D0D.4F

-EARS ACID2TEST RATIO

//0$/4 1./01

//H$/0 1.D01

//G$/H 1./F1

//F$/G 1.1F1

//E$/F 1.F01

INTERPRETATION#


47/100

Acid$test ratio is near to one in current year that is 1./0 as compare to 1.D0 in the previous year.

6ver all the acid$test ratio of last five year is very satisfactory so we can conclude that the

absolute li!uidity of the eliance Industries (imited is in favour.

DEBTORS TURNO>ER RATIO

This ratio shows the proportion of sales to average receivables. It shows the efficiency of the

collection policy of the firm. The higher the ratio, the less satisfactory position of the firm.

#igher ratio indicates weak collection policy of the firm.

F!r the ear#

,889 2 8@ R'( 1F1E./1 J D1.11

R'( E0EE.4H

,887 2 89 R'( 1DH1EG.GG J .G/1

R'( G/G0.D/

,885 2 87 R'( 111G4.H J 4.41

R'( DHD.E

,886 2 85 R'( 0111.DD J 14.F/1

R'( E1GD.G

,884 2 86 R'( GG/F1.D/ J 1G.01

R'( D4H.01


48/100

INTERPRETATION#

:e know that the higher %ebtor@s turnover ratio is not good for the firm. In the year //0$/4 it is

D1.11 but in the previous year it was .G/1. 'o some improvement is needed.

CREDITORER RATIO #

3reditor@s turnover ratio shows the proportion of purchase to account payable number of days

within which we make payment to our creditors for credit purchases estimated the creditors ratio

if this ratio is higher it means company has to check whether company is making payment within

credit period available. If it is making payment before the due date means the company is not


49/100

taking full advantage of it credit period and if company making the payment the period that

indicates that the company is not taking the benefit of discount allowed.

F!r the ear#

,889 2 8@ R'( 1104G1.1G J D.DD1

R'( DFHFG.40

,887 2 89 R'( 1/0H/ J E.G1

R'( DE1H.F1

,885 2 87 R'( 4D/1./4 J F.EH1

R'( 1G0DF.FD

,886 2 85 R'( G4/ED.ED J F.E41

R'( 1FGD.F/

,884 2 86 R'( FH1F.4 J D.4G1

R'( 1D0D.4F

-EARS CREDITORER RATIO

//0$/4 D.DD1

//H$/0 E.G1

//G$/H F.EH1

//F$/G F.E41

//E$/F D.4G1


50/100

INTERPRETATION#

#igher atio of creditor turnover forces the company to check that payment is made with in

credit period properly or not. The creditors@ turnover ratio is D.DD in //0$/4 as compare to

//H$/0 the ratio is E.G which is higher than the other years.

IN>ENTOR- TURNO>ER RATIO

This ratio is also known as *stock turnover ratio+. The number of times the average stock is

turnover during the year is known as stock turnover. It is computed by deciding the sales by the

inventory. The ratio is important in "oining the ability of management which it can move the

stock.

F!r the ear#


51/100

,889 2 8@ R'( 1F1E./1 J H.F1 times

R'( /1/4.G1

,887 2 89 R'( 1DH1EG.GG J H.1H times

R'( 141G.1E

,885 2 87 R'( 111G4.H J 4./ times

R'( 11DG.F1

,886 2 85 R'( 0111.DD J 0 times

R'( 1/114.0

,884 2 86 R'( GG/F1.D/ J 0.41 times

R'( HE1.00

-EARS IN>ENTOR- TURNO>ER RATIO

//0$/4 H.F1 times

//H$/0 H.1H times

//G$/H 4./ times

//F$/G 0.// times

//E$/F 0.41 times


52/100

INTERPRETATION#

#igher the ratio more profitability the business would be. The ratio is "oining the ability of

management with which it can move the stock. Inventory turnover ratio is highest in the year

//G$/H is 4./ as compare to the other year but in current year it is H.F1 which is little lower

than previous year but it is obvious that in heavy industries like eliance Industries (imited have

lower ration as compare to ;M3ER RATIO

Net working capital turnover ratio is obtained by net working capital "oining to sales. The excess

of current assets over current liabilities is called working capital. It is found for measuring firm

li!uidity. It also measures the firm potential reserve of funds.


53/100

F!r the ear#

,889 2 8@ R'( 1F1E./1 J F.0D times

R'( 140HE./G

,887 2 89 R'( 1DH1EG.GG J F.FH times

R'( EG.10

,885 2 87 R'( 111G4.H J 4.0F times

R'( 11DDE.4F

,886 2 85 R'( 0111.DD J 1/ times

R'( 0114.4H

,884 2 86 R'( GG/F1.D/ J F.0D times

R'( 11D/

-EARS WORKING CAPITAL TURNO>ER RATIO

//0$/4 H.G/ times

//H$/0 F.FH times

//G$/H 4.0F times//F$/G 1/.// times

//E$/F F.0D times


54/100

INTERPETATION#

As per the balance sheet data of the creditor the working capital turnover ratio is different for the

different years. The ratio is H.G/ in //0$/4 and F.FH in //H$/0 but the best favorable ratio is in

//F$/G which is 1/ times. 'o it means that higher the ratio better the working capital conditionof the company.

DEBTOR COLLECTION PERIOD

The %ebt 3ollection shows the number of days taken to collect the debts of credit sales. It shows

the efficiency and collection policy of the company. The ratio is computed by dividing the

%ebtor@s turnover ratio in to DGF days.

F!r the ear#

,889 2 8@ J DGF days J 11 days

D1.1

,887 2 89 DGF days J 1G.1F days

.G/

,885 2 87 DGF days J 1./ days 4.4

,886 2 85 DGF days J 10.H1 days

14.F/

,884 2 86 DGF days J 1.H/ days

1G.0

-EARS DEBTORS COLLECTION PERIOD

//0$/4 11.// days

//H$/0 1G.1F days

//G$/H 1./ days

//F$/G 10.H1 days

//E$/F /.H1 days


55/100

INTERPRETATION#

The collection period is highest in //E$/F is /.H1 days as compare to very low in //0$/4 is

only 11 days. This shows the improvement in collection policy of the eliance Industries

(imited. 'o it is very important for any company to collect the debs which this company do very

well.


56/100


57/100

TABLE 3

CONSUMER PREFERENCE TOWARDS CELL P)ONE SER>ICE PRO>IDERS

S(NO NAME OF T)E SER>ICE

PRO>IDER

NUMBER OF

RESPONDENTS

1 eliance 3ommunications E4

Airtel FE

D 9odafone G1

E Idea D

F Tata %ocomo D4


58/100

INTERPRETATION#• Most of the espondents prefer 9odafone followed by Airtel, eliance 3ommunications,

Tata %ocomo and Idea respectively.

• The number of respondents are more than 1// because of multiple responses by the

respondents.

TABLE ,SER>ICE PREFERENCE OF RESPONDENTS ON T)E BASIS OF AGE WISE

CLASSIFICATION

S(NO NAME OF T)E

SER>ICE

PRO>IDER

UPTO ,8 ear'( ,32?8 ear'

NO( OF

RESPONDENTS

OF

RESPONDENT

S

NO( OF

RESPONDENTS

OF

RESPONDENTS

eliance

3ommunications

0 D 1 DD.0

Airtel 4 DG 14 D/.

9odafone G E 1 DD.0HIdea 0 / /

Tata %ocomo / / 1 1.G

TOTAL ,6 388 5, 388


59/100

?3248 ear' 48 ear' and A$!He TOTAL

NO( OF

RESPONDENT

S

OF

RESPONDENT

S

NO( OF

RESPONDENT

S

OF

RESPONDENT

S

NO( OF

RESPONDENT

S

OF

RESPONDE

TS

1G.GH 0.FH D D

DD.DD E FH.1E DE DE

F/ 1 1E.4 D1 D1

/ / /

/ / / 1

388 7 388 388 388

INFERENCE#

• Among respondents upto / years of age group, ma"ority of them -i.e. DG2 are using

Airtel folllowed by eliance users-D2.

• 3onsumers in the age group of 1 ? D/ years FH of respondents are mostly prefer

9odafone and eliance-DD.0 and DD.0H respectively2 and D/ of the respondents are

using Airtel.

• F/ of customers are using 9odafone, who are in the age group of D1 ? E/ years.


60/100

• E1 and above ? FH of the respondents are using Airtel and 0.FH of respondents are

using eliance.

TABLE ?

COMPOSITION OF RESPONDENTS ON T)E BASIS OF MARITAL STATUS

S(NO( MARITAL STATUS NUMBER OF

RESPONDENTS

OF RESPONDENTS

1. MAI8% DD DD

7NMAI8% GH GH

TOTAL 388 388

INFERENCE#

The married respondents are using cell phones in DD, but the unmarried respondents are using

cell phones in GH.

TABLE 4

COMPOSITION OF RESPONDENTS ON T)E BASIS OF EDUCATION

UALIFICATION


61/100


62/100

1. 7I'N8'' 1 1

&6;8''I6NA(

D 8M&(=688 DD DD

E #6M8 MA)8 0 0

F 'T7%8NT EE EE

G 6T#8' 1 1

TOTAL 388 388

INFERENCE#

EE of the total sample who are students are using cell phones, followed by employees -DD2,

businessmen -02, home makers -02 and others -12.

TABLE 5

COMPOSITION OF RESPONDENTS ON T)E BASIS OF FAMIL- INCOME

*PER MONT)+

S(NO( OCCUPATION NUMBER OF

RESPONDENTS

OF RESPONDENTS

1. (ess than s. F,/// D1 D1


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s. F,//1 to s. 1/, /// EF EF

D s. 1/,//1 to s. 1F,/// 1D 1D

E Above s. 1F,/// 11 11

TOTAL 388 388

INFERENCE#

EF of respondents are get monthly income of s.F,/// ? s.1/,///, and D1 of respondents

are get monthly income as less than s.F,///. 6n the other hand, 1D of the respondents get a

monthly income of s. 1/,/// ? s. 1F,/// and 11 get s. 1/,/// and above.

TABLE 7

TABLE S)OWING SOURCE OF INFORMATION TO SELECT SER>ICEPRO>IDERS

S(NO( OCCUPATION NUMBER OF

RESPONDENTS

OF RESPONDENTS

1. ;amily Members E/ E/


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Neighbours

D elations F F

E ;riends DH DH

F Advertisement E E

G %ealers G G

H 6thers G G

TOTAL 388 388

INFERENCE#

The most influencing factor for choosing the service provider according to the respondents is

;amily Members -E/2 followed by ;riends -DH2, %ealers and 6thers -G both2, elations

-F2, Advertisement -E2 and Neighbours -2.


65/100

TABLE NO# 9

COMPOSITION OF RESPONDENTS ON T)E BASIS OF PURPOSE OF PURC)ASE

OF T)E CELL P)ONES

S(NO( PURPOSE NUMBER OF

RESPONDENTS

OF RESPONDENTS

1. ;or usiness E E

;or &ersonal F0 F0

TOTAL 388 388

INFERENCE#


66/100

E of respondents are using cell phones for their business, and F0 of respondents are using

cell phones for their personal usage.

TABLE @

T-PE OF CONNECTION PEFERRED

INFERENCE#

Ma"ority of people prefer prepaid connections with 9odafonel at top followed by Airtel, Idea and

Tata %ocomo. &eople prefer postpaid connection of eliance but substantial but less people

prefer prepais connection for eliance.

TABLE 38

AWARENESS OF >ARIOUS SC)EMES

S(N! >ARIOUS

SER>ICES

AWARE UNAWARE TOTAL

NO(OF

RESPON

DENTS

OF

RESPON

DENTS

NO(OF

RESPON

DENTS

OF

RESPON

DENTS

NO(OF

RESPOND

ENTS

OF

RESPONDEN

TS

S(NO SER>ICE

PRO>IDERS

PREPAID POST

PAID

TOTAL

NO( OF

RESPONDENTS

1 eliance3ommunnications

1 0 E4

Airtel F1 D FE

D 9odafone F 4 G1

E Idea DH 1 D0

F Tata %ocomo E E


67/100

1 '3#8M8 6;INITIA(&73#A'8

G1 G1 D4 D4 1// 1//

A(AN386; TA()

3#A


68/100

TABLE NO# 33

INFLUENCING FACTORS TO SELECT T)E SER>ICE PRO>IDER

S(NO( FACTORS NUMBER OF

RESPONDENTS

OF RESPONDENTS

1. %eposit Amount 1D 1D

rand Image EF EF

D Availability 1/ 1/

E 3redit ;acility for

3onnection

0 0

F 3ustomer 3are 'ervice 1H 1H

G 'ervice 3harges H H

TOTAL 388 388

INFERENCE#


69/100

EF of respondents are purchasing a particular service provider by its rand Image, 1H of

respondents are choosing the particular service provider by their customer care service, 1D by

%eposit Amount, 1/ by Availability, 0 by 3redit ;acility for 3onnection and H by 'ervice

3harges.

TABLE NO# 3,

CONSUMEREL ON T)E BASIS OF PRICE OF T)E CELL

P)ONE PRO>IDERS

S(N

O

SER>ICE

PRO>IDER

)IG)L-

SATISFACTOR-

SATISFACTOR- NON

SATISFACTOR-

TOTAL

1 eliance3omunications

0 1 4 E4

Airtel D/ / E FE

D 9odafone D0 1D 1/ G1

E Idea 1/ F 1D D0F Tata %ocomo 1E H D E


70/100

INFERENCE#

D0 of the respondents are highly satisfied for the price of 9odafone followed by Airtel, reliance

3ommunications, Tata %ocomo and Idea respectively. &eople using Idea service are not satisfied

in ma"ority out of the total number of respondents using Idea service.

TABLE NO# 3?

CONSUMEREL ON T)E BASIS OF AFTER SALES SER>ICE

OF T)E SER>ICE PRO>IDER

S(N

O

SER>ICE

PRO>IDER

)IG)L-

SATISFACTOR

-

SATISFACTOR

-

NON

SATISFACTOR

-

TOTAL

1 eliance3omunication

D1 1 G E4


71/100

s

Airtel EF F E FE

D 9odafone D4 1 1/ G1

E Idea 4 F 1E D0

F Tata %ocomo 1F G D E

INFERENCE#

Ma"ority of the respondents -EF2 are highly satisfied about after sales service by Airtel, followed

by 9odafone, eliance, Tata %ocomo and Idea respectively.

1 -eliance users2 and F -Airtel users2 are satisfied -average2 by the after sales service.

1E respondents of total Idea users are dissatisfied by the after sales service whereas only G and E

users of eliance and Airtel are dissatisfied.

TABLE NO# 34

CONSUMEREL T)E BASIS OF PERIODICAL OFFERSPRO>IDED B- T)E SER>ICE PRO>IDERS

S(N

O

SER>ICE

PRO>IDER

)IG)L-

SATISFACTOR-

SATISFACTOR- NON

SATISFACTOR-

TOTAL

1 eliance3omunications

DD 1 E E4


72/100

Airtel F 1 1 FE

D 9odafone E F 1E G1

E Idea 4 F 1E D0

F Tata %ocomo 1E H D E

INFERENCE#

6n the basis of periodical offers E of 9odafone respondents followed by DD of eliance are

highly satisfied, and only 4 respondents for Idea.

1 respondents are satisfied -average2 of Airtel@s and eliance@s periodical offers.

1E respondents of 9odafone and Idea are dissatisfied whereas E and 1 respondents are

dissatisfied for eliance and Airtel respectively.

TABLE NO 36

CONSUMER


73/100

INFERENCE#

GE of the respondents state that cell phones are necessity, F state cell phones as a status

symbol and 11 of respondents are only states that cell phones are luxury.

TABLE 35

REASONS FOR FACING DIFFICULT- IN CELL P)ONE CONNECTION

REASONS NO( OF RESPONDENTS

3overage E

'ervice D

3larity EF

Network usy FG


74/100

INFERENCE#

Ma"ority of respondents face difficulty in their cell phone connection due to Network problem

followed by 3overage problem, clarity and 'ervice.

C)I2SUARE TEST

3hi$s!uare test is one of the simplest and most widely used nonparametric tests in statistical

work. This test was first used by )arl &earson in the year 14//. The !uantity describes the

magnitude of the discrepancy between theory and observation. It is a method to test the

relationship between the theoretical -hypothesis2 B the observed value.

Chi : 'uare te't *Q ,+ *O : E+, E

De0ree' O" Freed!% > *R : 3+ *C 23+

:ere,

SO@ J 6bserved ;re!uency

SE@ J 8xpected ;re!uency -8mn J total of column Sm@ U total of row Sn@2 Total number of fre!uenciesSR @ J Number of ows

SC@ J Number of 3olumns

F!r a// the hi2'uare te't the ta$/e Ha/ue ha' taen 6 /eHe/ !" 'i0ni"iane(

33 ha' $een u'ed "!r the hi2'uare te't(


75/100

TABLE NO( 6(3

C)I2SUARE ANAL-SIS ON T)E RELATIONS)IP BETWEEN AGE AND

SATISFACTION WIT) REGARDING T)E CELL P)ONE SER>ICE PRO>IDER

AGE LE>EL OF SATISFACTION TOTAL

)IG) MODERATE LOW

7&T6 / yrs. 1 F

1$D/ yrs. 1F DE 1D G

D1$E/ yrs. / G / G

E/ yrs. and above 1 E H

T6TA( 10 GG 1G 1//

#/ There is no significant relationship between age and level of satisfaction.

#1 There is significant relationship between age and level of satisfaction.

6 8 -6$82 -6$82 -6$82C8

E.F/ $ .F/ G.F 1.D4

1F 11.1G D.0E 1E.H 1.D

/ 1./0 $ 1./0 1.1G 1./0

1 1.G $ /.G /./H /./F

1G.F/ F.F/ D/.F 1.0D

DE E/.4 $ G.0 EG.F 1.1EG D.4G ./E E.1G 1./F

E E.G $ /.G /.D0 /./0

1 E $ D 4 .F

1D 4.4 D./0 4.F /.4G

/ /.4G $ /.4G /.4 /.4G

1.1 /.00 /.HH /.G4

'ince some expected values are less than F we are clubbing 1 st,Drd,Eth, Hth, 0th, 4th, 11th and 1th

fre!uencies

6 8 -6$82 -6$82 -6$82C8

1F 11.1G D.0E 1E.H 1.D

1G 1.F $ F.F D/.F 1.DE1

1G.F/ F.F D/.F 1.0D

DE E/.4 $ G.0 EG.F 1.1E

1D 4.4 D./0 4.F /.4G

T6TA( G.F41


76/100

Q , *O2E+, E 5(6@3

Nu%$er !" de0ree !" "reed!%# nd" *r!23+ *!/u%n :3+ *?+ *,+ 5

Ta$/e Ha/ue !" Q , at 6 /eHe/ !" 'i0ni"iane 3,(6@

C!n/u'i!n#

#/ is accepted since the calculated value of Q , *5(6@3+ less than the table value of Q , *3,(6@+

hence there is no significant relationship between level of satisfaction and age.

TABLE NO( 6(,

C)I2SUARE ANAL-SIS ON T)E RELATIONS)IP BETWEEN MARITAL STATUS

AND SATISFACTION WIT) REGARDING T)E CELL P)ONE SER>ICE PRO>IDER

AGE LE>EL OF SATISFACTION TOTAL

)IG) MODERATE LOW

Married E G D DD

7nmarried 4 F 1D GH

T6TA( DD F1 1G 1//

#/ There is no significant relationship between gender and level of satisfaction.

#1 There is significant relationship between gender and level of satisfaction.

6 8 -6$82 -6$82 -6$82C8

E 1/.04 $ G.04 EH.F E.DG

4 .11 G.04 EH.F .1F

G 1G.0D 4.1H 0E E.44

F DE.1H $ 4.1H 0E .EG

D F.0 $ .0 F./ /.40

1D 1/.H .0 F./ /.E4

T6TA( 1F.ED

Q , *O2E+, E 36(4?

Nu%$er !" de0ree !" "reed!%# nd" *r!23+ *!/u%n :3+ *3+ *,+ ,

Ta$/e Ha/ue !" Q , at 6 /eHe/ !" 'i0ni"iant 6(@@


77/100

C!n/u'i!n#

#1 is accepted since the calculated value of Q , *36(4?+ more than the table value of Q , *6(@@+

hence there is significant relationship between level of satisfaction and marital status.

TABLE NO( 6(?

C)I2SUARE ANAL-SIS ON T)E RELATIONS)IP BETWEEN EDUCATIONAL

UALIFICATION AND SATISFACTION WIT) REGARDING T)E CELL P)ONE

SER>ICE PRO>IDER

EDUCATIONAL

UALIFICATION

LE>EL OF SATISFACTION TOTAL

)IG) MODERATE LOW

#'3 1 14 1 D


78/100

DE /.HE 1D.G 1HF.0 0.E0

14 1E.E/ E.G/ 1.1G 1.EH

D H.EF $ E.EF 14.0/ /.H

1 1D.F1 $ 1.F1 .0 /.1H

T6TA( 11.F0

Q , *O2E+, E 33(69


Ta$/e Ha/ue !" Q , at 6 /eHe/ !" 'i0ni"iant 3,(6@

C!n/u'i!n#

#/ is accepted since the calculated value of Q , *33(69+ less than the table value of Q , *3,(6@+

hence there is significant relationship between level of satisfaction and educational !ualification.

TABLE NO( 6(4

C)I2SUARE ANAL-SIS ON T)E RELATIONS)IP BETWEEN OCCUPATION AND

SATISFACTION WIT) REGARDING T)E CELL P)ONE SER>ICE PRO>IDER

EDUCATIONAL

UALIFICATION


)IG) MODERATE LOW

7I'N8'' G F 1 1

&6;8''I6NA( 1 1 /

8M&(=688 1F 1F D DD

#6M8 MA)8 D E 1 0

'T7%8NT DF F E EE

6T#8' 1 / / 1

T6TA( G1 D/ 4 1//

#/ There is no significant relationship between occupation and level of satisfaction.

#1 There is significant relationship between occupation and level of satisfaction


79/100

6 8

G H.D

1 1.D

1F /.1D

D E.00

DF G.0E1 /.G1

F D.G/

1 /.G/

1F 4.4/

E .E/

E 1D./

/ /.D/

1 1./0

/ /.10

D .4H

1 /.HE D.4G

/ /./4

M8


80/100

C)I2SUARE ANAL-SIS ON T)E RELATIONS)IP BETWEEN MONT)L- INCOME

AND SATISFACTION WIT) REGARDING T)E CELL P)ONE SER>ICE PRO>IDER

MONT)L-

INCOME


)IG) MODERATE LOW

(ess than s. F,/// 1G 1D D1

s. F,//1 to s. 1/,

///

/ D EF

s. 1/,//1 to s.

1F,///

D F F 1D

Above s. 1F,/// G D 11

T6TA( ED EE 1D 1//

#/ There is no significant relationship between monthly income and level of satisfaction.#1 There is significant relationship between monthly income and level of satisfaction.

M8


81/100

1D 1D.GE $ /.GE /.E1 /./D

/ 14.0/ /. /./E /.//

F F.H $ /.H /.F /./4

D F.0F $ .0F 0.1 1.D4

T6TA( D.H/

Q , *O2E+, E ?(78,


Ta$/e Ha/ue !" Q , at 6 /eHe/ !" 'i0ni"iant 3,(6@

C!n/u'i!n#

#/ is accepted since the calculated value of Q , *?(78,+ less than the table value of Q , *3,(6@+

hence there is no significant relationship between level of satisfaction and monthly income.

TABLE NO( 6(5

C)I2SUARE ANAL-SIS ON T)E RELATIONS)IP BETWEEN SER>ICE

PRO>IDERS AND SATISFACTION

NAME OF T)E

SER>ICE

PRO>IDER


)IG) MODERATE LOW

eliance

3ommunications

D0 0 D E4

Airtel E4 E 1 FE

9odafone D DF D G1Idea 1D H D D

Tata %ocomo 1 10 4 D4

T6TA( 1DF H 14 G

*The t!ta/ nu%$er !" re'.!ndent' here i' %!re than 388 $eau'e !" %u/ti./e re'.!n'e' $

re'.!ndent'(+

#/ There is no significant relationship between service

providers and level of satisfaction.

#1 There is significant relationship between service

providers and level of satisfaction.

6 8

D0 4.H

E4 D.G

D DG.EE

1D 1D,HE1 D.D/

0 1F.G1

E 1H./

DF 14.ED

H H.DD

10 1.E

D E.1

1 E.FE

D F.1D

D 1.4D

4 D.0


82/100

MERGING#

6 8 -6$82 -6$82 -6$82C8

1G 1D.0H .1D E.FD /.DD

D0 4.H 0.HD HG. .G/E4 D.G 1G.HE 0/.D 0.G4

D DG.EE $ 1D.EE 10/.GD E.4

1D 1D.HE $ /.HE /.FF /./E

1 D.D/ $ 11.D 1H.G4 F.E0

0 1F.G1 $ H.G1 FH.41 D.H1

E 1H./ $ 1D./ 1HE.E 1/.1D

DF 14.ED 1F.FH E.E 1.E0

H H.DD $ /.DD /.11 /./

10 1.E F.F0 D1.1E .F1

D E.1 $ 1.1 1.F /.D/1 E.FE $ D.FE 1.FD .HG

D F.1D $ .1D E.FE /.00

D 1.4D 1./H 1.1E /.F4

4 D.0 F.H D.H 4.40

T6TA( GF.E/

Q , *O2E+, E ,3(85

Nu%$er !" de0ree !" "reed!%# nd" *r!23+ *!/u%n :3+ *5+ *,+ 3,

Ta$/e Ha/ue !" Q , at 6 /eHe/ !" 'i0ni"iant ,3(85

C!n/u'i!n#

#1 is accepted since the calculated value of Q , *56(48+ is more than the table value of Q , *,3(85+

hence there is significant relationship between level of satisfaction and service provider.

TABLE NO( 6(7

C)I2SUARE ANAL-SIS ON T)E RELATIONS)IP BETWEEN USE OF CELL

P)ONE AND SATISFACTION

&7&6'8 LE>EL OF SATISFACTION TOTAL

)IG) MODERATE LOW

;or uiness 1G E E

;or &ersonal 1 E F0

T6TA( 0 EG G 1//

#/ There is no significant relationship between use of cell phone and level of satisfaction.


83/100

#1 There is significant relationship between use of cell phone and level of satisfaction.

6 8 -6$82 -6$82 -6$82C8

1G 11.HG E.E 1H.40 1.11

1 1G.E $ E.E 1H.40 1.11

E 14.D E.G0 1.4/ /.0

G.G0 $ E.G0 1.4/ /.0

1/.4 $ 0.4 H4.FH F.0

E 1F./0 0.4 H4.FH F.0

T6TA( 1E.E

Q , *O2E+, E 34(4,

Nu%$er !" de0ree !" "reed!%# nd" *r!23+ *!/u%n :3+ *3+ *,+ ,Ta$/e Ha/ue !" Q , at 6 /eHe/ !" 'i0ni"iant 6(@@

C!n/u'i!n#

#1 is accepted since the calculated value of Q , *34(4,+ is more than the table value of Q , *6(@@+

hence there is significant relationship between level of satisfaction and use of cell phone.


84/100

This chapter is allocated to express the findings of this study. 'tatistical tools are applied to

analy5e the data. It includes the result of each and every tables, charts and tests.FINDINGS FOR RELIANCE INDUSTRIES LIMITED

• The company having comfortable working capital position.

• The absolute li!uidity of the eliance Industries (imited is in favour.

• The collection policy of the company is very good.

• The creditors turnover ratio is D.DD in //0$/4 as compare to //H$/0 the ratio is E.G

which is higher than the other years.

• Inventory turnover ratio is highest in the year //G$/H is 4./ as compare to the other

year but in current year it is H.F1 which is little bit lower than previous year but it is

obvious that in heavy industries like eliance Industries (imited have lower ratio as

compared to ;M3


85/100

• The working capital ratio is H.G/ in //0$/4 and F.FH in //H$/0 but the best favorable

ratio is in //F$/G which is 1/ times. 'o it indicates better working capital condition of

the company.

•This is an improvement in collection policy of the eliance Industries (imited.

FINDINGS FOR RELIANCE COMMUNICATIONS * CUSTOMER PREFERENCE+

6n the basis of consumer preference, ma"ority of the peoples are preferred 9odafone and

eliance at the Drd position.

6n the basis of age group, most of the respondents -DD.02, are using eliance, who are

in the age group of 1$D/ years.

6n the basis of marital status mostly unmarried respondents are using cell phones than

married respondents.

6n the basis of educational !ualification, most of the graduates are using cell phones.

6n the basis of occupation, the students and employees are using cell phones in more

level.

6n the basis of family income, EF of the respondents are using cell phones, who are all

get family income of s.F, //1 ? 1/, ///.

Ma"ority of the peoples choose the service provider by family members influence.

E of respondents are only influenced by advertisements.

Ma"ority of the peoples are using cell phones for personal usage.

Ma"ority of the peoples are using prepaid scheme.

Ma"ority of the people are aware of the various schemes provided by the service

providers.

Ma"ority of the people keep in mind the brand image before selecting their service

provider.

Ma"ority of the respondents are highly satisfied about the price of Airtel


86/100

&eople using Idea service are not satisfied in ma"ority out of the total number of

respondents using Idea service.

6n the basis of after sales service, the ma"ority of the respondents are highly satisfied in

Airtel, 9odafone and eliance respectively.

6n the basis of periodical offers, ma"ority of the people are highly satisfied by 9odafone

and eliance respectively.

6n the basis of consumer@s attitude, ma"ority of the people are states that cell phones are

necessity to all.

easons for facing difficulty in cell phone connection are Network problem followed by

3overage problem, clarity and 'ervice.

FINDINGS FROM C)I2SUARE TEST

• 3hi$s!uare test reveals that there is no significant relationship between satisfaction level

and age.

• There is significant relationship between the marital status and level of satisfaction.

• There is significant relationship between education !ualification and level of satisfaction.

• 3hi$s!uare test reveals that there is no significant relationship between occupation and

level of satisfaction.

• 3hi$s!uare test shows that there is no significant relationship between monthly income

and level of satisfaction.

• 3hi$s!uare test indicate that there is significant relationship between service provider and

satisfaction level.

• There is significant relationship between level of satisfaction and use of cell phone.

O>ERALL CONCLUSION#

'ince ma"ority of the factors have significant relationship with the satisfaction level we can

conclude that there is significant relationship between the factors and the satisfaction and hence

we accept the alternative hypothesis of the pro"ect i.e. # 1.


87/100


88/100

SUGGESTIONS

The recommendation B suggestion for effective management of working capital at I( are given

bellow


89/100

23 ;or inventory, in order to improv

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