LOVELY

PROFESSIONAL

University

SUMMER TRAINING PROJECTREPORT

TATA COMMUNICATIONS INTERNET SERVICES LTD.

SUBMITTED TO:Mr.Sachin ChaturvediBranch ManagerTCISL

SUBMITTED BY: Manisha narang BBA(3rd SEM)

Lovely professional university

ACKNOWLEDGEMENT

Any accomplishment requires efforts of a lot of people & this work is no

exception. I feel privileged to Mr.Sachin Chaturvedi, Branch Manager of

Tata Communications Internet Services Ltd, Chandigarh without whose

able guidance, Co-operation & Supervision the present study could not

have taken its present form.

I wish to thank as well as Mr.Vikas Kapoor (Territory network manager)

for his inspiration & valuable suggestions during this study.

I wish to thank Mr. Varun Sharma(CS Executive),TCISL for his

suggestions & encouragements from time to time.

My thanks are due to all the employees of Tata Communication Internet

Services Ltd ,Chandigarh for their help & support.

I would also thank my parents, my friend Akashdeep Singh & Anshu

Girdhar for their support & encouragement.

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TABLE OF CONTENTS

Chapter No. Subject Page No.

Ch.-1.0 Executive Summary………………………….4

Ch.-2.0 Research Methodology……………… ……....61.1 Primary Objective(s)…………………..61.2 Scope of the Study…………………….71.3 Limitations…………………………….7

Ch.-3.0 Introduction to industry……………………....8Ch.-4.0 Introduction to Tata group……………………12 1.1 Management of Tata group……………...13

1.2 Its companies……………………………15Ch.-5.0 About TCISL………………………………….19

5.1 History of TCISL………………………...195.2 Company Profile……………………….....205.3 Organisation structure………………….....25

Ch.-6.0 Customer service department………………….266.1 Introduction……………………………….26

Ch-7.0 Experience of customers……………………….277.1 customer problems…………………………287.2 Resolution process(connectivity issues)…...297.3 Resolution process(billing issues)……..…..307.4 Resolution process(other problems)….........317.5 Suggestions………………………………...32

Ch-8.0 TATA comes with WIMAX…………………..368.1 Introduction To WIMAX……….....………37

Ch-9.0 Acceptance of WIMAX………………………..43

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EXECUTIVE SUMMARY:

Being in touch with customers needs is….....always important.but

perhaps it becomes more important when needs are changing.

As a natural extension of any business,the customer support allows it to

take the pulse of whatever market they move into and provide the right

technology to its customers.Only the customer support can become the

backbone of any company and can be used as a greatest tool in its growth.

The objective of today’s industrial organizations should not only be to

produce goods and render services for achieving the economic goal but

they should also nurture a crop of healthy customer relations that are

fortified with trust and respect.Because In today’s era:

“It is not the cash that fuels the journey to the future, but ultimately it’s the customers that can shape a company’s future.”

The purpose of this report is to analyse the trends in the region regarding

the inclination of the customer towards new technology launched as well

as the distribution of the clients of TATA in comparison with other

competitors.

The basic objective of this report is to analyse the customer satisfaction

with TATA for their previous services.And the reasons behind such a

level of customer satisfaction.

After going through this report of mine the reader will be clear about all

the facts related with the customer services what TATA is providing to its

customers.

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Beginning with a brief introduction to the industry and the role of TATA

in transforming the industry and the services in the country, the report

clearly shows that how TATA is contributing towards the economic

growth of the country. It gives a brief information about the TATA group

and its companies. This report discusses commendable and never

stopping improvement of TATA COMMUNICATIONS INTERNET

SERVICES LTD. From its glorious heritage to its current place in the

market. Then one can come to the structure of the organisation. The main

emphasis in this report is laid on the customer service department of

TCISL. This report can help the company to know and focus on the areas

where they need to improve as it discusses all the reasons behind all the

problems. The globalized business scene is getting complex day by day

with mega mergers, acquisitions, expansions and globalization becoming

a part and parcel of organization activity. and in such an era one really

needs to take care of customer satisfaction level of the company. The

rule of a successful business is:

“You can’t buy your customers You must earn them.”

To say all in one this report is a brief description of the services that

TATA is providing to their customers and what more should be done to

retain our customers. Adding more into this report it discusses many facts

and observations in concern of the new technology “WIMAX”.

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Research Methodology:

For the purpose of presentation of the facts concluded herein, the

following methods were employed:

Telephonic conversation with the customers

Interviews with the employees

Observation of the customer reactions as well as issues faced by

them from the point of view of the customer support executive as

well as attending the incoming customers and recording the

observations

Calling the customers for retention was another activity that

emerged as a major source of genuine customer grievances.

Personally calling the customers to have the general customer

perception of WIMAX.

To further delve into the details of possibilities of WIMAX and its

acceptance with the customer (existing as well as prospective),

thorough analysis of the data collected from the sales department

was undertaken. This resulted in some very interesting conclusions

that have been summarised in the report.

Primary Objective:

To know the customers inclination towards the new technology –

WIMAX.

To analyse the customer base of TATA with respect to its

competitors.

To analyse the customer distribution across various business sectors

and look for prospective customer base for WIMAX

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Scope of the Study:

The study will help us to reach conclusive results regarding the following

Customer Satisfaction Level

Various problems being faced by the customers

Scope of improvement of Customer Support Issues

Extent of Acceptance of WIMAX

Main areas where most of the marketing resources should be

concentrated to market the new products effectively.

Limitations of the Study:

Every research work suffers from some inherent and some universal

limitations that reduce the accuracy of the research.

The actual Acceptance is influenced by the expertise of the sales

personnel who is interacting with the prospective customer.

The sample size also influences the quality of conclusions because a

small sample may not present a correct measure of market pulse.

Also a large sample taken over a large geographical area may

ignore the regional variations. Such variations may be the key to

specialised marketing and hence, more closings.

The study does not cover the effect of future marketing efforts on

the customer.

We are able to analyse the general trend in the consumers over the

three key locations covered. But the study cannot come up to any

conclusion regarding the causes of such trends.

The study cannot deduce the extent of faithfulness of existing

customers who have provided a positive feedback to WIMAX.

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INTRODUCTION TO THE INDUSTRY:

Telecom industry is one of the fastest growing sectors in India with

a lot of activity happening in that space nowadays with the entry of

global players like the Vodafone, Airtel, Tata, Reliance, connect etc.

The stage is set for a battle as the players roll up their sleeves for a

tough battle for who gets a larger chunk of one of the largest and fastest

growing sector in the world. At this time it becomes very interesting to

keep an eye on the changes that are happening in the competitive

landscape of this industry and share and increase our knowledge about

the sector.

With the Telecom industry booming and with lots of players coming in

for this big industry in India, there is a fierce competition among all the

players. All are trying their means to grab the loyalty of the customer

through various means; differentiation is one of the key factors

How the industry stands Today?

The telecom industry has been growing at a scorching pace in the

recent years. We have moved decisively from an environment that

was monopolized by state owned companies, and in which there was

a huge unmet customer demand for telecom services, to one that is

characterized by intense competition among several players, and

availability of quality telecom services on demand at very affordable

prices. Much of this has happened because of the wireless revolution

taking place in the country, as is happening globally. The global

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telecom industry which was in phase of recession in the recent years

is now looking up.

Wireless dominance is the governing theme, with the wireless

subscriber base taking over the wireline subscriber base in 2008.

Increasingly, wireline subscribers are expected to cut the cord and

migrate to wireless, while new users will pick up the wireless as their

first phone. Wireless has been the principal growth engine. In the

context of wireline broadband the country is in infant stage and it is

only in the medium term that one expects the wireline broadband

services to take off.

The global wireless revolution has made its presence felt in India also.

Just like the other parts of the world it has been the principal engine

for growth in the telecom sector. In the last 3 years, two out of every

three new telephone subscribers were wireless subscribers. In fact, in

certain pockets of the country, the wireless subscribers already

outnumber the wireline subscribers, mirroring the global trend.

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Road to Future:

The wireless revolution will increase its pace and the factors that have

been responsible for its growth will carry it further. The wireless data

services will act as a revenue stream for the wireless operators. With

further rollout of wireless broadband, backed by the provision of

compelling content services, broadband revenues will comprise a key

portion of the total telecom pie in the future.

Scale and integration will be the key drivers of future consolidation.

Wireless is increasingly going to become a volume game with thin

margins. Hence, small operators with low economies of scale will not

be viable as cost per minute will be very high for them. Therefore,

one will see smaller operators consolidating among themselves or

merging with large operators. The future market will be characterized

by high, competition and churn and the winners will be distinguished

by how they address these challenges. They will have to juggle

between achieving economies of scale, efficient network

management, increasing operating margins & attracting and

maintaining subscriber base.

The future value will reside in ownership of customer relationship and

provision of diversified services. This implies a trend towards

bundled service offerings. For provision of bundled services,

operators will need to have strategic alliances with intermediaries

through whom traditional commercial transactions can be executed.

Operators with the best interface strategies will succeed in

maintaining the customer loyalty.

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The operators need to rapidly grow their subscriber base while

simultaneously maintaining customer loyalty. The ability to segment

customers, identify the best among them and maximize their value

will determine success.

To summarize it all in one go one can safely say:

India is at the inflection point of a different growth trajectory and one

can see it bridging the gap with China. With the regulatory

environment stabilizing, competitive landscape becoming clearer, and

increasing global confidence in the Indian economy, India is poised to

have the second largest telecom network after China in the next 5 to 7

years.

Wireline

Internet

Wireless

Wireline Pay TV

Wireless

Wireline

Internet

InternetFull Service

Triple Play

Basic Bundling

Bundling of Services

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INTRODUCTION OF TATA GROUP

Tata is a rapidly growing business group based in India with significant

international operations. The Group employs around 350,000 people

worldwide. The Tata name has been respected in India for 140 years for

its adherence to strong values and business ethics.

The business operations of the Tata Group currently encompass seven

business sectors: Communications and Information Technology,

Engineering, Materials, Services, Energy, Consumer Products and

Chemicals.

The major companies in the Group include Tata Steel, Tata Motors, Tata

Consultancy Services (TCS), Tata Power, Tata Chemicals, Tata Tea,

Indian Hotels and Tata Communications Internet services

limited(TCISL).

The Group’s major companies are beginning to be counted globally. Tata

Steel became the sixth largest steel maker in the world after the

acquisition of Corus. Tata Motors is amongst the top five commercial

vehicle manufacturers in the world and has recently completed the

acquisition of Jaguar and Land Rover. TCS is one of the leading global

software businesses, with delivery centres in the US, UK, Hungary,

Brazil, Uruguay and China, other than India. Tata Tea is the second

largest branded tea company in the world, through its UK based

subsidiary Tetley. Tata Chemicals is the world’s second largest

manufacturer of soda ashR. Tata Communications Internet services

limited is one of the world’s largest wholesale voice carriers.

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MANAGEMENT OF TATA GROUP:

The Tata Group is headed by Group chairman Ratan Tata. The Group

Corporate Centre (GCC) is the top decision-making body of the Tata

Group. Each company has its own management.

Values and purpose:

Leadership with trust.

Purpose:

At the Tata Group our purpose is to improve the quality of life of the

communities we serve. We do this through leadership in sectors of

national economic significance, to which the Group brings a unique set of

capabilities. This requires us to grow aggressively in focused areas of

business.

Our heritage of returning to society what we earn evokes trust among

consumers, employees, shareholders and the community. This heritage is

being continuously enriched by the formalisation of the high standards of

behaviour expected from employees and companies.

The Tata name is a unique asset representing leadership with trust.

Leveraging this asset to enhance Group synergy and becoming globally

competitive is the route to sustained growth and long-term success.

Five Core Values:

The Tata Group has always sought to be a value-driven organisation.

These values continue to direct the Group's growth and businesses. The

five core Tata values underpinning the way we do business are:

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Integrity: We must conduct our business fairly, with honesty and

transparency. Everything we do must stand the test of public

scrutiny.

Understanding: We must be caring, show respect, compassion

and humanity for our colleagues and customers around the world,

and always work for the benefit of the communities we serve.

Excellence: We must constantly strive to achieve the highest

possible standards in our day-to-day work and in the quality of the

goods and services we provide.

Unity: We must work cohesively with our colleagues across the

Group and with our customers and partners around the world,

building strong relationships based on tolerance, understanding and

mutual cooperation.

Responsibility: We must continue to be responsible, sensitive to

the countries, communities and environments in which we work,

always ensuring that what comes from the people goes back to the

people many times over.

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ITS COMPANIES

The Tata family of enterprises comprises 98 companies in seven business sectors. This section lists all these companies under the sectors in which they operate, besides the two promoter companies of the Group.

Promoter companies Global operations

Seven business sectors

Promoter companies

Tata Sons

Tata Financial Services Tata Quality Management Services

Tata Industries

Tata Interactive Systems Tata Strategic Management Group

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Global operations

Tata Africa Holdings

Tata AG

Tata Enterprises AG

Tata Incorporated

Tata International

Tata International AG

Tata Limited

Tata Precision Industries

Tata Tea Inc

Seven Business Sectors

Engineering, Materials, Energy, Chemicals , Services ,Consumer

products ,Information systems, communications

ENGINEERING:

Automotive:

Tata Auto Comp Systems Tata Motors

Engineering Services:

Tata Projects

TCE Consulting Engineers

Voltas

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Engineering Products:

TAL Manufacturing Solutions

TRF

MATERIALS:

Composites:

Tata Advanced Materials

Metals:

Tata steel

ENERGY:

Power:

Tata BP Solar India

Tata Power

Oil And Gas:

Tata Petrodyne

CHEMICALS:

Pharma:

Rallis India

Tata Chemicals

Tata Pigments

SERVICES:

Hotels And Realty:

Indian Hotels (Taj group) Tata Housing Development Company

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Tata Realty and Infrastructure

Other Services:

Tata Services

Tata Quality Management Services

Tata Strategic Management Group

CONSUMER PRODUCTS

Tata Tea

Tata Ceramics

Tata McGraw Hill Publishing Company

Titan Industries

INFORMATION SYSTEMS AND COMMUNICATIONSInformation Systems:

Tata Consultancy Services

Tata Business Support Services

Tata Technologies

Tata Interactive Systems

Communications:

Tata Sky

Tata Teleservices

Tata Communications Internet services limited

Tatanet

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GLORIOUS HERITAGE OF TATA COMMUNICATIONS INTERNET SERVICES LIMITED:

In 1932 the two merged to form Indian Radio and Cable Communications

Co. (IRCC).

In 1986 VSNL (Videsh Sanchar Nigam Limited which translates to

Overseas Telecommunication Corporation Limited in English) was

incorporated as a wholly owned government entity.

In 2000 Tata Group acquires a controlling stake in VSNL, Tata Indicom,

the umbrella brand for Tata Telecom Services, starts operation.

In 2002 The Indian Government privatized VSNL. Tata Group holds 46%

stake in VSNL, The Indian government holds 26% stake.

In 2004 VSNL International is launched.

In 2005 VSNL acquires Tyco Global Network, becoming one of the

world’s largest providers of submarine cable bandwidth.

In 2006 VSNL acquires Teleglobe, growing its global reach, operational

strengths, and deep carrier relationships.

In 2007 Tata Group acquires a controlling stake in Neotel, the No 2

Provider in South Africa.

In 2008, Tata Communications Internet services limited became the

unified global brand for VSNL, VSNL International, Teleglobe, Tata

Indicom Enterprise Business Unit, and CIPRIS.

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COMPANY’S PROFILE:

ABOUT TATA COMMUNICATIONS INTERNET SERVICES LIMITED

The Tata Communications Internet services limited headquarters at Fort,

Mumbai.

Tata Communications Internet services Limited along with its global

subsidiaries (Tata Communications Internet services limited) is a leading

global provider of the new world of communications. The company

leverages its Tata Global Network, vertical intelligence and leadership in

emerging markets, to deliver value-driven, globally managed solutions to

the Fortune 1000 and mid-sized enterprises, service providers and

consumers..

Tata Communications became the unified global brand for VSNL, VSNL

International, Teleglobe, Tata Indicom Enterprise Business Unit and

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CIPRIS in February, 2008. The company is now the number one global

international wholesale voice operator and number one provider of

international long distance, enterprise data and internet services in India.

The Tata global network encompasses one of the most advanced and

largest submarine cable networks, a Tier-1 IP network, connectivity to

more than 200 countries across 300 PoPs and more than one million

square feet data centre space.

The Tata Communications Internet services limited portfolio includes

transmission, IP, converged voice, mobility, managed network

connectivity, hosted data center, communications solutions and business

transformation services to global and Indian enterprises & service

providers as well as, broadband and content services to Indian consumers.

The Tata Global Network encompasses one of the most advanced and

largest submarine cable networks, a Tier-1 IP network, connectivity to

more than 200 countries across 300 PoPs and more than one million

square feet data center space.  Tata Communications Internet services

limited serves its customers from its offices in 80 cities in 40 countries

worldwide. Tata Communications Internet services limited has a strategic

investment in South African operator Neotel, providing the company with

a strong anchor to build an African footprint.

The number one global international wholesale voice operator and

number one provider of International Long Distance, Enterprise Data and

Internet Services in India, the company was named "Best Wholesale

Carrier" at the World Communications Awards in 2006 and was named

the "Best Pan-Asian Wholesale Provider" at the 2007 Capacity Magazine

Global Wholesale Telecommunications Awards for the second

consecutive year.

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Becoming the leading integrated provider to drive and deliver a new

world of communications, Tata Communications Internet services limited

became the unified global brand for VSNL, VSNL International,

Teleglobe, Tata Indicom Enterprise Business Unit and CIPRIS on

February 13, 2008.

Tata Communications Internet services limited Ltd. is a part of the $29

billion Tata Group; it is listed on the Bombay Stock Exchange and the

National Stock Exchange of India.

Broadband services:

Tata Teleservices and Tata Communications Internet services limited,

through the brand Tata Indicom, offer high-bandwidth, reliable, secure

and cost-effective internet connectivity on broadband asynchronous

digital subscriber lines (ADSLs). Businesses in industry segments such as

information technology, hospitality, travel, logistics, stock broking and

finance use these services.

Tata Indicom's broadband services include:

Speed DSL internet service plan — the first choice for high-speed

internet connectivity with a pay-as-you-use tariff plan.

Value internet service plan — connects customers on 1:4

compressed internet bandwidth with flat-rate billing.

Gold internet service plan — connects customers on 1:1 dedicated

premium internet bandwidth with flat-rate billing.

Areas of business:The Tata Communications Internet services limited portfolio for global

and Indian enterprises and service providers includes:

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Transmission

Internet protocol (IP)

Converged voice, mobility, managed network connectivity

Hosted data centre

Communications solutions

Business transformation services

The company also provides broadband and content services to Indian

consumers.

Location

Tata Communications Internet services limited serves its customers from

offices in 80 cities across 40 countries across the world. With a strategic

investment in South African operator Neotel, Tata Communications

Internet services limited possesses a strong anchor to build an African

footprint.

Vision

Deliver a new world of communications to advance the reach and

leadership of customers.

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Commitment

Invest in building long-lasting relationships with customers and partners

and lead the industry in responsiveness and flexibility.

Strategy

Build leading-edge IP-leveraged solutions advanced by its unmatched

global infrastructure and leadership in emerging markets.

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ORGANISATIONAL STRUCTURE:

Mr. Sachin Chaturvedi

(BranchManager)

Sales DepartmentTechnical

DepartmentRetention and

Revenue Department

Customer Service Department

Mr Anuj(DST)

Mr. Sunil Wadhwa

(TSM DSA)

Mr. Amit Pandey(TSM Distribution)

Vikas Kapoor(Territory Network

Manager)

Mr. Ashish Narula(Incharge. Installation

and Maintenance Team

Mr. Surjit Cheema(Incharge. Fiber

Repair team)

Fiber Repair TeamInstallation and

Maintenance Team

Mr. Lovkesh Wasan(Team Leader R&R)

Collection Team

Mr. Varun Sharma(CS Executive0

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A successful business:The purpose of a business is to create and keep a customer. If a business successfully creates and keeps customers in a cost-effective way, it will make a profit while continuing to survive and thrive. If, for any reason, a business fails to attract or sustain a sufficient number of customers, it will experience losses. Too many losses will lead to the demise of the enterprise.

Customer service Department:

Customer service which is also known as Client Service, is the provision of service to customers before, during and after a purchase.

“Customer service is a series of activities designed to enhance the level of customer satisfaction – that is, the feeling that a product or service has met the customer expectation.”

Customer service may be provided by a person (e.g., sales and service representative), or by automated means called self-service. Examples of self service are Internet sites. Customer service is normally an integral part of a company’s customer value proposition.

The quality and level of customer service has decreased in recent years, which can be attributed to a lack of support or understanding at the executive and middle management levels of a corporation.

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EXPERIENCE OF CUSTOMERS WITH THE WIRELINE NETWORK:

The experience of customers was not upto the satisfactory level.it was below the satisfaction level of customers.customers faced alot of problems due to:

1) Cable cut issues.2) Their problems are not sought out on time.3) Due to overhead wiring.4) Fiber cut issues.5) Validity extension delays.6) Frequent disconnections.7) Not getting stable services.

And the two merits of tata’s connection are customers never face any problems regarding speed and installation time.the company takes hardly 3 days for installation which other companies never provides.Some other issues which were analysed after calling customers were:

a) The plans were not customised as per customers need.b) Plans are costly.

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DIAGRAMATIC REPRSENTATION OF

CUSTOMERS PROBLEMS :

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DIFFERENT TYPES OF COMPLAINTS

CONNECTIVITYRELATEDPROBLEMS

BILLING RELATED PROBLEMS

OTHER PROBLEMS

VALIDITY EXTENSION DISPUTES, DOWNTIME CREDIT,BILL CLARIFICATIONBILL DISPUTES,BILLS NOT RECEIVED

E-MAIL CONFIGURATION (OUTLOOK PROBLEMS)REFUND NOTPROCESSED, WEBHOSTING, UNABLETO RENEW OR PURCHASE, SHIFTING OF CONNECTION,AND OTHER SERVICERELATED ISSUES.

NO LINK,NO BROWSING,SLOW BROWSINGFREQUENTDISCONNECTIONS

Customer care at TCISL:Process of resolution of customer’s complaints regarding connectivity issues:

The process starts with customer care department. The complaints of the customer are registered in their respective login Id’s in their accounts. Then it is sent to technical department or technical team through mails. The customer’s complaint is mailed to technical department by customer care department. And then it is assigned to field engineers by the technical team to resolve the problem of customer. Further after the resolution of problem field engineers revert to technical team and report to technical team in the office telephonically. Next step is of technical department to update the resolution remarks in their systems. Once the remarks are updated it is mailed to customer service department. And finally the complaint is closed in the customer’s account by customer care department. Then therapy calling is done to customer to know whether his\her complaint is solved. And in case of any troubles at customers end the case of the customer is again re-escalated and then the same procedure is followed.

Customer care department

TechnicalDepartment/billing department

Assigned to field engineers

Back to customer care for confirmation

Complaint is closed

Call is made to customer

Reverted to technical team by field engineers

Resolutionremarks updated by technical department

Complaint not resolved then it is re-escalated.

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Process of resolution of customers complaint regarding billing issues:

The process begins of resolution of customers complaint regarding billing issues begins with customer care.the complaints are registered in the respective login id’s of customers and then the case is forwarded to billing department.then the complaints are resolved by R & R team.resolution remarks are updated by billing department.And Then remarks are mailed back to customer care for confirmation.then finally the complaint is closed in the records by the customer care department.after that our team calls the customers to get the feedback of customers regarding their problems.if in case the problem is not resolved then the complaint is reescalated.and follows the same process again.

Customer care department

Billing department/

Complaints are resolved

Resolution remarks are updated.

Back to customer care for confirmation

Complaint is closed.

If not resolved complaint is reescalated.

Call is made to customer.

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Process of resolution of customers complaint regarding some other issues (E-mail configuration,outlook problem and many more)

The process for resolution for other issues are again firstly registered with customer care department in customers login id’s.Then the customer care department assigns the cases to the respective departments with whom the problems are related.The particular departments then resolves the problem of the customers and again the remarks are updated.Remarks are then forwarded to customer care department.Finally the complaint is closed.and similarly if the problem is not resolved it is reescalated like other issues.

Customer service department.

Complaint is resolved

Remarks are updated.

Assigned to related departments

Forwarded to customer care department

Complaint is closed.

If not resolved then complaint is reescalated.

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CERTAIN SUGGESTIONS

REGARDING ABOVE PROBLEMS:

1. Encourage Face-to-Face Dealings

This is the most important thing at the part of a company to interact

with their customers. Practically a customer finds it easier to relate

to and work with someone they've actually met in person, rather

than a voice on the phone or someone typing into an email or

messenger program.

2. Respond to Messages promptly & Keep the

customers Informed

In today era no one have so much time that is being spent on

complaints half of the times. We all know how annoying it is to

wait days for a response to an email or phone call. It might not

always be practical to deal with all customers' queries within the

space of a few hours, but at least an email or call should be made

to them back and let them know that their message is received and

company will contact them about it as soon as possible. Even if

their complaint is not resolved or it is under processing the

customer should be informed. because in that case if more time is

needed to resolve their problems it didn’t seem bad as the company

has already informed them. and this would be a prime thing that

can be done for customer service.

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3. Be Friendly and Approachable

It's very important to be friendly, courteous and to make the

customers feel that the company is there to help them out.As this

thing is very much present in our organisation but still always there

are chances to improve upon and the company can make more

efforts for this thing.

4. Have a Clearly-Defined Customer Service Policy

Everything should be made clear about the customer service policy

which is going to save the customers a lot of time. There's nothing

more annoying for a client than being passed from person to

person, or not knowing who to turn to. Making sure they know

exactly what to do at each stage of their enquiry should be of

utmost importance.

5. Attention to Detail (also known as 'The Little

Niceties')

Have a customer ever received a festival email or card from a

company?

These little niceties can be time consuming and aren't always cost

effective, but this one small thing but having a greater impact on

customer can be taken into consideration.

It shows that the company cares for its customers, it shows there

are real people on the other end of that screen or telephone,and

most importantly, it makes the customer feel welcomed, wanted

and valued.

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6. Honour Your Promises

The simple message: when you promise something, deliver. The

most common example is their problem resolution dates.

In case of non fulfillment of a promise, a quick apology and

assurance should be ready from company’s side.

7. Proper coordination between departments

There should be proper coordination among different departments within

the organisation for better results. and resolve the problems of

customers.For example in case of connectivity issues there should be

proper coordination among customer service and technical

department.and in case of any billing issues it is must that the billing and

customer service department should have proper coordination.

8.Insufficient manpower:

After having feedback from all the departments, some departments

requested for more manpower mainly because of the geographical area of

Chandigarh.

9. Technical Backwardness

Competitors are employing certain small and very cost effective measures

to reduce the interruptions due to installation faults. For example, some

measures like

1. Using boxes to cover open joints in overhead wirings.

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2. Using polyvinyl tubing to secure the wires at the wall/window

corners to protect the transmission media against wear and tear

at the customer end.

Such measures may also add to a number of reduced complaints and

satisfied customers and should be encouraged.

Conclusion

Customer service, like any aspect of business, is a practiced art that

takes time and effort to master. The company can think from the

point of view of customers.What would the company want from

their business if they were the client? How would the company

want to be treated? Treat customers like friends and they'll always

come back.

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Tata Communications Rolls Out World's

Largest Commercial WiMAX Network

with Telsima

WIMAX STRIKING CHANDIGARH:All human beings have

evolved into smart wireless internet surfing. so are you

HUMAN?

Tata Communications is the first Indian telecom company to launch

broadband services on the WiMAX platform on a large scale for retail

consumers in the country.

Tata Communications,a leading global provider of a new world of

communications, has selected Telsima Corporation, a global player in

WiMAX systems to provide WiMAX solutions for Tata Communications

broadband wireless network in India. Tata Communications is the first to

launch broadband services on the WiMAX platform on a large scale for

retail consumers in India.Tata Communications seeks to enrich life by

enabling reliable and affordable communication anytime, anywhere",

"WiMAX enables broadband services in a cost effective, decentralized

manner in India where a majority of the country is not covered by wired

infrastructure. The Indian broadband market, which today serves only 3.1

million customers in a nation with a population of over 1.2 billion, is

forecast to grow significantly. The scale of unmet demand coupled with

the emphasis on connectivity for education and the increasing ability to

purchase Internet services will ensure that WiMAX broadband networks

will thrive in this market.

36

WI-MAX:

WIMAX, the Worldwide Interoperability for Microwave Access, is a

telecommunications technology that transfers data wirelessly over long

distances and is seen as an alternative to cable linkages.

Tata Communications is the first Indian telecom company to launch

broadband services on the WiMAX platform on a large scale for retail

consumers in the country.

Uses

The bandwidth and reach of Wi Max make it suitable for the following

potential applications:

Connecting Wi-Fi hotspots with other parts of the Internet.

Providing a wireless alternative to cable and DSL for last mile

broadband access.

Providing data and telecommunications services.

Providing a source of Internet connectivity as part of a business

continuity plan. That is, if a business has a fixed and a wireless

Internet connection, especially from unrelated providers, they are

unlikely to be affected by the same service outage.

Providing portable connectivity.

Comparison with Wi-Fi

Comparisons and confusion between WiMAX and Wi-Fi are frequent,

possibly because both begin with the same two letters, are based upon

IEEE standards beginning with "802.", and both have a connection to

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wireless connectivity and the Internet. Despite this, the two standards are

aimed at different applications.

WiMAX is a long-range system, covering many kilometers that

typically uses licensed spectrum (although it is possible to use

unlicensed spectrum) to deliver a point-to-point connection to the

Internet from an ISP to an end user. Different 802.16 standards

provide different types of access, from mobile (similar to data

access via a cellphone) to fixed (an alternative to wired access,

where the end user's wireless termination point is fixed in

location.)

Wi-Fi is a shorter range system, typically hundreds of meters, that

uses unlicensed spectrum to provide access to a network, typically

covering only the network operator's own property. Typically Wi-

Fi is used by an end user to access their own network, which may

or may not be connected to the Internet. If WiMAX provides

services analogous to a cellphone, Wi-Fi is more analogous to a

cordless phone. It's important to note, however, that free

community wifi networks have shown that with proper antennas,

wifi can have very long ranges.

WiMAX and Wi-Fi have quite different Quality of Service (QoS)

mechanisms. WiMAX uses a mechanism based on setting up

connections between the Base Station and the user device. Each

connection is based on specific scheduling algorithms, which

means that QoS parameters can be guaranteed for each flow. Wi-Fi

has introduced a QoS mechanism similar to fixed Ethernet, where

packets can receive different priorities based on their tags. This

means that QoS is relative between packets/flows, as opposed to

guaranteed.

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WiMAX is highly scalable from what are called "femto"-scale

remote stations to multi-sector 'maxi' scale base that handle

complex tasks of management and mobile handoff functions and

include MIMO-AAS smart antenna subsystems.

Due to the ease and low cost with which Wi-Fi can be deployed, it is

sometimes used to provide Internet access to third parties within a single

room or building available to the provider, often informally, and

sometimes as part of a business relationship. For example, many coffee

shops, hotels, and transportation hubs contain Wi-Fi access points

providing access to the Internet for customers.

39

In practical terms, WiMAX would operate similar to WiFi but at higher

speeds, over greater distances and for a greater number of users. WiMAX

could potentially erase the suburban and rural blackout areas that

currently have no broadband Internet access because phone and cable

companies have not yet run the necessary wires to those remote locations.

A WiMAX system consists of two parts:

A WiMAX tower, similar in concept to a cell-phone tower - A

single WiMAX tower can provide coverage to a very large

area -- as big as 3,000 square miles (~8,000 square km).

A WiMAX receiver - The receiver and antenna could be a small

box or PCMCIA card, or they could be built into a laptop the

way WiFi access is today.

A WiMAX tower station can connect

directly to the Internet using a high-

bandwidth, wired connection (for

example, a T3 line). It can also

connect to another WiMAX tower

using a line-of-sight, microwave link.

This connection to a second tower

(often referred to as a backhaul),

along with the ability of a single

tower to cover up to 3,000 square

miles, is what allows WiMAX to provide coverage to remote rural areas.

40

What this points out is that WiMAX actually can provide two forms of

wireless service:

There is the non-line-of-sight, WiFi sort of service, where a

small antenna on your computer connects to the tower. In this

mode, WiMAX uses a lower frequency range -- 2 GHz to 11

GHz (similar to WiFi). Lower-wavelength transmissions are

not as easily disrupted by physical obstructions -- they are

better able to diffract, or bend, around obstacles.

There is line-of-sight service, where a fixed dish antenna points

straight at the WiMAX tower from a rooftop or pole. The line-

of-sight connection is stronger and more stable, so it's able to

send a lot of data with fewer errors. Line-of-sight

transmissions use higher frequencies, with ranges reaching a

possible 66 GHz. At higher frequencies, there is less

interference and lots more bandwidth.

WiFi-style access will be limited to a 4-to-6 mile radius (perhaps 25

square miles or 65 square km of coverage, which is similar in range to a

cell-phone zone). Through the stronger line-of-sight antennas, the

WiMAX transmitting station would send data to WiMAX-enabled

computers or routers set up within the transmitter's 30-mile radius (2,800

square miles or 9,300 square km of coverage). This is what allows

WiMAX to achieve its maximum range.

Why WiMax and Not Wi-Fi?

The Wi-Fi bandwagon is faced with a few issues such as line-of-sight,

limited distance coverage despite the use of high-gain antennas,

and internal bandwidth management. Wi-Fi is found wanting in

41

terms of serving the latest demands. Conversely, WiMax is a

globally accepted, technically capable, and industry-wide

supported standard. The emergence of WiMax has opened up the

solution to many of the problems faced by Wi-Fi because, WiMax

uses non-line-of-sight standard and can cover tens of miles unlike

Wi-Fi that is restrictive to the surroundings and resources. WiMax

complements Wi-Fi because it uses the same Logical Link

Controller standard (IEEE 802.2) that enables both bridging and

routing. It is also compatible to the existing Wi-Fi hotspots to the

internet and also provides wireless solution for last mile access to

cable and DSL. This is a tremendous advantage that WiMax has in

order to capture the market.

42

Customer Acceptance Survey

Based on the actual market research data, a set of conclusions could be

drawn regarding the acceptance of existing TATA customers, non-

broadband users as well as users already taking services from the

competitors towards WIMAX.

Acceptance in Chandigarh:

Sample Size: 2884

Client Distribution Graph (By Business Category)

Acceptance/Interest Expressed:

43

Observations:

1. A major section of the customers (SME’s and Retail) are less

inclined WIMAX with percentage acceptance being as low as 0.56

% and 0.4% for SME’s and retail respectively.

2. Acceptance is high among (Almost Three Times) in IT and

Education sector. (1.5 % Accepted the new technology)

Client Distribution Graph (By Company for SME’s)

Sample Size: 1939

Acceptance/Interest Expressed (Within SME’s)

44

Observations:

1. Rate of Acceptance is (mostly) directly proportional to the number

of customers in each Business category.

2. The percentage acceptance for top three groups varies between1

3. However the rate of acceptance is extremely low (From 1.03% to

1.3%) as evident from the above diagrams.

None of the existing TATA customers are willing to switch over to the

WIMAX technology. This is not a good sign as the rate of acceptance is

expected to be higher with the existing customers.

ACCEPTANCE IN MOHALI

Client Distribution Graph (By Business Category)

ACCEPTANCE:

45

Observations:

1. Opposed to the trend in Chandigarh, The acceptance level in

Mohali is generally high in SME’s and Retail sectors (Being 1.54%

and 2.08% as compared to 0.5% and 0.4% in Chandigarh

respectively).

2. Again opposed to Chandigarh trend, The IT and Education sector is

not interested in WIMAX technology.

Company wise Customer Distribution:

Acceptance/Interested:

Observations:

46

1. Company wise Acceptances analysis suggests that a customers

from strong market holders are showing interest in the new

technology (AIRTEL and CONNECT) with a percentage higher

than the average trend of 3.65% and 2.07% respectively for Airtel

and Connect.

2. A conclusion can also be deduced about the low acceptance trend

for TATA and Reliance customers both in Chandigarh as well as

Mohali.

47

PANCHKULA REGION:

Sample Size: 893

Customer Distribution by Business

Customer Acceptance by Business

Observations:

1. Similar to the trend in Chandigarh, the SME’s and retail businesses

are not that much inclined to the new technology (Between 0.56%

to 0.99%)

2. There is a high rate of acceptance in ‘others’ section (Above to 2.8

%) There is no such observation in other two regions.

48

Company Wise Acceptance:

Company Wise Customer Distribution:

Company Wise Customer Acceptance:

Observations:

1. Here the rate of acceptance of TATA’s offer is relatively high.

Highest rate of acceptance is observed for all major competing

service providers (Airtel 14.28%, BSNL 8.33%, Reliance 8.69%)

2. There is a high probability of conversion of existing customers to

the new technology.

49

Summary

Chandigarh, Mohali, Pachkula:

Sample Size: 4871

Client Distribution Chart (By Business)

Client Acceptance

Percent Acceptance

Client Distribution Chart (By Company)

50

Client Distribution Chart (By Company)

Client Acceptance Percentage (By Company)

51

Observations and Final Conclusions/Suggestions

One stark observation is that the overall percentage acceptance of

TATA’s new technology is extremely low. Refer to the following:

o Chandigarh Area : 0.56 % of a sample of 2881

o Mohali Area : 1.44 % of a sample of 1104

o Panchkula Area : 2.12 % of a sample of 893

As observed from the Final Summary Chart for all three regions, it

is evident that the customer base is NOT concentrated in the

Retail/SME’s/IT or Medical and Education only. Rather majority

of the customers are from the ‘others’ section that includes

businesses other than the ones mentioned. Hence these other

sectors also need to be targeted for prospective customers of

WIMAX technology.

Existing Airtel, Reliance and Connect customers show more

willingness to accept the new technology as evident from the final

acceptance values of 2.73, 3.44 and 2.08 percent respectively.

Existing Panchkula customers show a very high rate of acceptance

(airtel -14.28%, BSNL – 8.33%, Reliance – 8.69 %, Connect –

4.30% ) for the wireless technology.

Another section of grave concern is the lean percentage of TATA

customers among the sample data which comes out to be only

2.24% as against 27.89% Airtel, 21.64% Connect, 9.44% BSNL,

Reliance 5.21% and ‘Others’ 32.88% (includes Hutch, Glide,

hatchway and lease-line providers). This leaves little scope for

success of a new technology with the existing customer base. So

most of the marketing methodologies will have to concentrate on

competitors’ customer base.

Further, more intriguing conclusions may be deduced from the

following calculations done on the basis of above findings:

52

Chandigarh      By Business Categories      Category Sample Acceptance PercentSME's 1939 11 0.57Educational Institutions 77 1 1.30IT 74 1 1.35Retail 781 3 0.38Others 10 0 0.00TOTAL 2881 16 0.56 Company   Wise Distribution      Airtel 375 5 1.33BSNL 144 0 0.00TATA 24 0 0.00Reliance 61 1 1.64Connect 195 2 1.03Sify 8 0 0.00Others 14 1 7.14Non-Users 1118 2 0.18TOTAL 1939 11 0.57

Mohali      By Business Categories      Category Sample Acceptance PercentSME's 711 11 1.55Educational Institutions 30 0 0.00IT 3 0 0.00Retail 48 1 2.08Others 312 4 1.28TOTAL 1104 16 1.45 Company   Wise Distribution      Airtel 219 8 3.65BSNL 42 0 0.00TATA 16 1 6.25Reliance 32 1 3.13Connect 193 4 2.07Sify 2 0 0.00Others 3 0 0.00Non-Users 597 5 0.84TOTAL 1104 19 1.72

53

Consolidated      Category Sample Acceptance PercentSME's 2828 24 0.85Educational Institutions 116 1 0.86IT 81 1 1.23Retail 930 5 0.54Others 923 21 2.28TOTAL 4878 52 1.07       Company Wise Distribution Airtel 622 17 2.73BSNL 210 2 0.95TATA 50 2 4.00Reliance 116 4 3.45Connect 481 10 2.08Sify 13 0 0.00Others 731 9 1.23Non-Users 1715 7 0.41TOTAL 3938 51 1.30

Panchkula      By Business Categories      Category Sample Acceptance PercentSME's 178 1 0.56Educational Institutions 9 0 0.00IT 4 0 0.00Retail 101 1 0.99Others 601 17 2.83TOTAL 893 19 2.13 Company   Wise Distribution      Airtel 28 4 14.29BSNL 24 2 8.33TATA 10 1 10.00Reliance 23 2 8.70Connect 93 4 4.30Sify 3 0 0.00Others 714 8 1.12Non-Users 0 0 0.00TOTAL 895 21 2.35

54

Profit & Loss account ------------------- in Rs. Cr. -------------------

Mar '04 Mar '05 Mar '06 Mar '07 Mar '08

12 mths 12 mths 12 mths 12 mths 12 mths

Income

Sales Turnover 3,163.54 3,303.04 3,780.95 4,041.83 3,283.30

Excise Duty 0.00 0.00 0.00 0.00 0.00

Net Sales 3,163.54 3,303.04 3,780.95 4,041.83 3,283.30

Other Income 190.52 512.39 124.62 105.83 173.25

Stock Adjustments 0.00 0.00 0.00 0.00 0.00

Total Income 3,354.06 3,815.43 3,905.57 4,147.66 3,456.55

Expenditure

Raw Materials 0.72 1.65 1.95 1.61 10.63

Power & Fuel Cost 31.28 34.61 37.93 43.09 63.12

Employee Cost 138.24 141.28 209.06 243.69 242.43

Other Manufacturing Expenses 1,759.66 1,859.76 2,127.36 2,258.37 1,873.13

Selling and Admin Expenses 645.66 401.31 338.67 376.15 321.18

Miscellaneous Expenses 57.21 70.62 115.03 165.19 127.26

Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00

Total Expenses 2,632.77 2,509.23 2,830.00 3,088.10 2,637.75

Mar '04 Mar '05 Mar '06 Mar '07 Mar '08

12 mths 12 mths 12 mths 12 mths 12 mths

Operating Profit 530.77 793.81 950.95 953.73 645.55

PBDIT 721.29 1,306.20 1,075.57 1,059.56 818.80

Interest 14.06 9.62 13.56 16.74 44.82

PBDT 707.23 1,296.58 1,062.01 1,042.82 773.98

Depreciation 172.07 244.15 359.56 391.33 301.31

Other Written Off 0.00 0.00 0.00 0.00 0.00

Profit Before Tax 535.16 1,052.43 702.45 651.49 472.67

Extra-ordinary items 7.78 1.38 45.30 69.19 16.76

PBT (Post Extra-ord Items) 542.94 1,053.81 747.75 720.68 489.43

Tax 165.61 297.61 207.18 244.07 145.52

Reported Net Profit 377.66 756.37 479.54 468.56 304.46

Total Value Addition 2,632.06 2,507.58 2,828.06 3,086.49 2,627.12

Preference Dividend 0.00 0.00 0.00 0.00 0.00

Equity Dividend 128.25 171.00 128.25 128.25 128.25

Corporate Dividend Tax 16.43 24.31 17.99 21.80 21.80

Per share data (annualised)

55

Shares in issue (lakhs) 2,850.00 2,850.00 2,850.00 2,850.00 2,850.00

Earning Per Share (Rs) 13.25 26.54 16.83 16.44 10.68

Equity Dividend (%) 45.00 60.00 45.00 45.00 45.00

Book Value (Rs) 181.30 200.98 212.67 223.14 229.73

Brief Financials (in Rs. Mn.) Detailed QuarterlyPeriod ending (months) 30-Sep-2008(6) 31-Mar-2008 (12) 31-Mar-2007 (12)Net sales 18471.10 32833.00 40418.30Other Income 1022.60 1660.40 1105.70Total Income 19493.70 34493.40 41524.00Cost of goods sold 14335.60 20606.20 31059.80OPBDIT 5158.10 13887.20 10464.20PAT 1309.80 3044.60 4685.60Gross Block - - 44698.40Equity capital 2850.00 2850.00 2850.00EPS (Rs.) - 10.68 16.44DPS (Rs.) - - 4.50BV (Rs.) - - 221.40P/E range (x) - 33.75 - 73.31 18.25 - 31.35Debt / Equity (x) - - 0.03Operating margin (% of OI) 26.5 40.3 25.2Net margin (% of OI) 6.7 8.8 11.3

As on (Months)Curr.Quarter 30-Sep-08(3)

%OIPrev.Quarter 30-Jun-08(3)

%OI Corr.Quarter 30-Sep-07(3)

%OI

Sales of Products/Services

9838.90 95.70 8632.20 93.70 9477.40 95.93

Other Income 441.90 4.30 580.70 6.30 402.00 4.07

Total Income b 10280.80 100.0

0 9212.90

100.00

9879.40 100.0

0

Stock 0.00 0.00 0.00 0.00 0.00 0.00

Raw Material Consumed

0.00 0.00 0.00 0.00 0.00 0.00

Employee Expenses

0.00 0.00 0.00 0.00 671.70 6.80

Power & Fuel 0.00 0.00 0.00 0.00 0.00 0.00

Other Expenses 0.00 0.00 0.00 0.00 7283.40 73.72

Total Expenses 7627.20 74.19 6708.40 72.82 7955.10 80.52

OPBDIT 2653.60 25.81 2504.50 27.18 1924.30 19.48

Interest 259.20 2.52 196.30 2.13 -87.70 -0.89

Depreciation 931.20 9.06 796.60 8.65 994.40 10.07

Extra incomes 0.00 0.00 0.00 0.00 0.00 0.00

Prior Period inc 0.00 0.00 0.00 0.00 -117.00 -1.18

Prov. for Tax 180.80 1.76 528.20 5.73 286.40 2.90

Profit after Tax 326.40 3.17 983.40 10.67 614.20 6.22

Equity 2850.00 -- 2850.00 -- 2850.00 --

Reserve 0.00 -- 0.00 -- 0.00 --

56

Income Statement

As on( Months ) 31-Mar-07(12)   31-Mar-06(12)   31-Mar-05(12)  

Profit / Loss A/C Rs mn %OI Rs mn %OI Rs mn %OI

Net Sales 40418.30 97.34 37809.53 97.81 33030.39 97.78

Operating Income (OI) 41524.00 100.00 38657.30 100.00 33778.73 100.00

OPBDIT 10464.20 25.20 10349.26 26.77 7755.35 22.96

OPBDT 10445.80 25.16 9619.56 24.88 6513.73 19.28

OPBT 6532.50 15.73 6025.84 15.59 4074.05 12.06

Non-Operating Income 965.40 2.32 1517.68 3.93 908.61 2.69

Extraordinary/Prior Period -455.60 -1.10 -430.48 -1.11 3288.81 9.74

Tax 2356.70 5.68 2317.62 6.00 2050.52 6.07

Profit after tax(PAT) 4685.60 11.28 4795.42 12.40 6220.95 18.42

Cash Profit 8598.90 20.71 8389.15 21.70 8660.62 25.64

Dividend-Equity 1282.50 3.09 1282.50 3.32 1710.00 5.06

Balance Sheet

As on 31-Mar-07   31-Mar-06   31-Mar-05  

Assets Rs mn %BT Rs mn %BT Rs mn %BT

Gross Block 44698.40 52.18 39864.96 49.26 30857.31 40.43

Net Block 31047.10 36.24 29366.64 36.29 22718.66 29.77

Capital WIP 3404.40 3.97 1478.09 1.83 5131.68 6.72

Investments 17480.40 20.41 15310.67 18.92 8904.56 11.67

Inventory 47.20 0.06 38.02 0.05 19.65 0.03

Receivables 9551.90 11.15 7375.71 9.11 6089.45 7.98

Other Current Assets 24130.50 28.17 27363.36 33.81 33453.58 43.83

Balance Sheet Total(BT) 85661.50 100.00 80932.49 100.00 76317.59 100.00

Liabilities Rs mn %BT Rs mn %BT Rs mn %BT

Equity Share Capital 2850.00 3.33 2850.00 3.52 2850.00 3.73

Reserves 60250.40 70.34 57042.76 70.48 53678.85 70.34

Total Debt 1976.10 2.31 982.50 1.21 0.00 0.00

Creditors and Acceptances 8145.30 9.51 9337.42 11.54 12421.38 16.28

Other current liab/prov. 12439.70 14.52 10719.81 13.25 7367.36 9.65

Balance Sheet Total(BT) 85661.50 100.00 80932.49 100.00 76317.59 100.00

Ratio Analysis

As on 31-Mar-07 31-Mar-06 31-Mar-05

OPBIT/Prod.cap.empl.(%) 18.75 19.64 13.49

PBIT/Cap. Employed (%) 11.45 13.20 18.51

PAT/Networth (%) 7.43 8.01 11.00

Tax/PBT (%) 33.46 32.58 24.79

Total Debt/Networth (x) 0.03 0.02 0.00

Long Term Debt/Networth (x) 0.00 0.00 0.00

PBDIT/Finance Charges (x) 596.41 15.67 9.63

Current Ratio (x) 1.64 1.73 2.00

RM Inventory (days consumption) 0.00 0.00 0.00

FG inventory (days cost of sales) 0.00 0.00 0.00

57

Receivables (days gross sales) 86.26 71.20 67.29

Creditors (days cost of sales) 95.72 120.40 174.22

Op. curr. assets (days OI) 199.00 201.00 364.00

Share Statistics

As on 31-Mar-07 31-Mar-06 31-Mar-05

EPS (Rs.) 16.44 16.83 21.83

CFPS (Rs.) 30.17 29.44 30.39

Book Value (Rs.) 221.40 210.15 198.35

DPS (Rs.) 4.50 4.50 6.00

Key Financial Ratios ------------------- in Rs. Cr. -------------------

Mar '04 Mar '05 Mar '06 Mar '07 Mar '08

Profitability Ratios

Adjusted Net Profit Margin(%) -42.03 -62.80 -44.62 -21.67 -8.34

Cash Profit Margin(%) -10.34 -24.99 -6.30 9.46 17.65

Gross Profit Margin(%) -8.21 -22.70 0.58 9.51 17.27

Operating Profit Margin(%) -0.06 -11.78 11.23 20.44 23.75

Profit Before Interest And Tax Margin(%) -31.25 -48.84 -31.79 -11.05 -1.90

Return On Capital Employed(%) -8.23 -20.95 -21.48 -7.74 1.44

Return On Net Worth(%) -75.50 1,207.92 108.73 96.70 62.69

Spread Ratios

Interest Expended / Total Funds(%) -- -- -- -- --

Interest Income / Total Funds(%) -- -- -- -- --

Net Interest Income / Total Funds(%) -- -- -- -- --

Net Profit / Total Funds(%) -- -- -- -- --

Non Interest Income / Total Funds(%) -- -- -- -- --

Operating Expense / Total Funds(%) -- -- -- -- --

Profit Before Provisions / Total Funds(%) -- -- -- -- --

Management Efficiency Ratios

Debtors Turnover Ratio 4.46 4.44 7.35 8.63 9.18

Fixed Assets Turnover Ratio 0.41 0.46 0.57 0.65 0.89

Inventory Turnover Ratio -- -- -- 645.58 800.04

Loans Turnover Ratio -- -- -- -- --

Total Assets Turnover Ratio 0.47 0.65 1.03 0.82 1.21

Total Income / Capital Employed(%) -- -- -- -- --

Profit And Loss Account Ratios

Interest Expended / Interest Earned(%) -- -- -- -- --

Operating Expense / Total Income(%) -- -- -- -- --

58

Other Income / Total Income(%) -- -- -- -- --

Liquidity And Solvency Ratios

Current Ratio 0.39 0.43 0.31 0.33 0.41

Debt Equity Ratio 4.14 -- -- -- --

Long Term Debt Equity Ratio 4.04 -- -- -- --

Balance Sheet Ratios

Advances / Loan Funds(%) -- -- -- -- --

Debt Coverage Ratios

Interest Cover -1.44 -2.83 -2.92 -0.74 0.21

Deposit And Credit Growth Ratios

Cash Deposit Ratio(%) -- -- -- -- --

Credit Deposit Ratio(%) -- -- -- -- --

Investment Deposit ratio(%) -- -- -- -- --

Leverage Ratios

Interest Expended / Capital Employed(%) -- -- -- -- --

Cash Flow ------------------- in Rs. Cr. -------------------

Mar '03 Mar '04 Mar '05 Mar '06 Mar '08

12 mths 12 mths 12 mths 12 mths 12 mths

Net Profit Before Tax -205.00 -269.68 -527.86 -492.96 -124.81

Net Cash From Operating Activities 63.75 -311.57 0.46 363.01 480.47

Net Cash (used in)/fromInvesting Activities

-15.48 -410.84 -441.01 -594.25 -1203.24

Net Cash (used in)/from Financing Activities

30.23 648.82 416.03 177.05 673.62

Net (decrease)/increase In Cash and Cash Equivalents

78.51 -73.59 -24.52 -54.19 -49.15

Opening Cash & Cash Equivalents 100.50 179.01 105.42 80.90 83.61

Closing Cash & Cash Equivalents 179.01 105.42 80.90 26.71 34.46

Fiscal Year 2007 2006 2005 2004 2003

Fiscal Year End Date

3/31/07 3/31/06 3/31/05 3/31/04 3/31/03

Assets          

Total Assets32,476,736.

028,624,880.

024,335,011.

022,040,228.

020,296,263.

0

Cash & Short Term

7.3% 7.9% 8.6% 10.2% 11.2%

59

Investments

     Cash 5.9% 5.5% 6.1% 7.8% 3.1%

     Short Term Investments

1.4% 2.4% 2.5% 2.3% 8.2%

Receivables (Net)

20.2% 20.6% 20.8% 20.7% 31.7%

Inventories -Total

5.6% 5.7% 5.4% 4.9% 5.3%

     Raw Materials

1.1% 1.0% 1.0% 0.9%  

     Work in Process

0.7% 0.8% 0.7% 0.8%  

     Finished Goods

3.7% 3.8% 3.7% 3.3%  

     Progress Payments & Other

0.0% 0.0% 0.0% 0.0%  

Prepaid Expenses

1.6%        

Other Current Assets

1.7% 3.4% 4.0% 4.4% 6.1%

Current Assets - Total

36.3% 37.5% 38.8% 40.1% 54.3%

Long Term Receivables

17.8% 17.1% 16.5% 14.8% 3.6%

Investment in Associated Companies

6.3% 6.4% 6.5% 6.2% 5.3%

Other Investments

11.8% 11.9% 11.1% 10.2% 8.0%

Property Plant and Equipment - Gross

54.0% 55.4% 57.8% 60.6% 66.2%

     Accumulated Depreciation

29.1% 30.7% 34.0% 36.3% 39.1%

     Property Plant and Equipment � Net

24.8% 24.7% 23.8% 24.3% 27.1%

Other Assets 2.9% 2.4% 3.3% 4.4% 1.7%

     Deferred 0.0% 0.0% 0.0%   0.0%

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Charges

     Tangible Other Assets

2.9% 2.4% 3.3%   1.7%

     Intangible Other Assets

        0.0%

Total Assets 100.0% 100.0% 100.0% 100.0% 100.0%

Liabilities & Shareholders' Equity

         

Total Liabilities & Shareholders' Equity

32,476,736.0

28,624,880.0

24,335,011.0

22,040,228.0

20,296,263.0

Accounts Payable

6.8% 7.3% 7.6% 7.8% 7.8%

Short Term Debt & Current Portion of Long Term Debt

18.1% 16.6% 14.5% 15.0% 15.6%

Accrued Payroll

        0.2%

Income Taxes Payable

1.3% 1.2% 1.2% 1.1% 1.6%

Dividends Payable

         

Other Current Liabilities

10.0% 9.9% 10.5% 10.5% 12.1%

Current Liabilities - Total

36.2% 35.0% 33.8% 34.5% 37.2%

Long Term Debt

19.3% 19.7% 20.6% 19.3% 20.2%

     Long Term Debt Excluding Capitalized Leases

19.2% 19.6% 20.4% 19.0% 20.2%

     Capitalized Lease Obligations

0.1% 0.2% 0.2% 0.3% 0.0%

Provision for Risks and Charges

2.0% 2.4% 2.7% 3.3% 3.2%

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Deferred Income

         

Deferred Taxes 3.7% 3.4% 3.3% 3.5% -0.2%

     Deferred Taxes - Credit

4.0% 3.8%     2.0%

     Deferred Taxes - Debit

0.3% 0.4%     2.2%

Deferred Tax Liability in Untaxed Reserves

         

Other Liabilities

0.4% 0.5% 0.3% 0.3% 0.4%

Total Liabilities

61.6% 61.0% 60.8% 60.9% 60.8%

Non-Equity Reserves

0.0% 0.0% 0.0% 0.0% 0.0%

Minority Interest

1.9% 2.1% 2.1% 2.0% 2.4%

Preferred Stock 0.0% 0.0% 0.0% 0.0% 0.0%

     Preferred Stock Issued for ESOP

         

     ESOP Guarantees - Preferred Issued

         

Common Equity

36.4% 36.9% 37.2% 37.1% 36.8%

Total Liabilities & Shareholders' Equity

100.0% 100.0% 100.0% 100.0% 100.0%

Fiscal Year 2007 2006 2005 2004 2003

Net Sales or Revenues

23,948,091.0

21,036,909.0

18,551,526.0

17,294,760.0

16,054,290.0

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Cost of Goods Sold

74.5% 74.8% 74.4% 73.5% 71.1%

Depreciation, Depletion & Amortization

5.8% 5.8% 5.4% 5.6% 5.3%

Gross Income 19.7% 19.5% 20.2% 20.9% 23.6%

Selling, General & Administrative Expenses

10.4% 10.5% 11.4% 11.9% 13.9%

Other Operating Expenses

0.0% 0.0% 0.0% 0.0% 1.2%

Operating Expenses - Total

90.7% 91.1% 91.2% 91.0% 91.5%

Operating Income

9.3% 8.9% 8.8% 9.0% 8.5%

Extraordinary Credit - Pretax

0.0% 0.7% 0.8% 2.5% 0.0%

Extraordinary Charge - Pretax

0.0% 0.0% 1.1% 1.9% 1.5%

Non-Operating Interest Income

0.6% 0.4% 0.4% 0.3% 0.3%

Reserves - Increase/Decrease

0.0% 0.0% 0.0% 0.0% 0.0%

Pretax Equity in Earnings

      0.0% 0.5%

Other Income/Expense - Net

0.3% -0.0% 0.8% 0.4% 2.6%

Earnings before Interest, Taxes, Depreciation & Amortization (EBITDA)

15.9% 15.8% 14.9% 15.9% 15.8%

Earnings before Interest & Taxes(EBIT)

10.2% 10.0% 9.6% 10.3% 10.5%

Interest Expense on Debt

0.2% 0.1% 0.1% 0.1% 0.2%

Interest Capitalized

0.0% 0.0% 0.0% 0.0% 0.0%

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Pretax Income 9.9% 9.9% 9.5% 10.2% 10.3%

Income Taxes 3.8% 3.8% 3.5% 3.9% 4.1%

Minority Interest 0.2% 0.4% 0.4% 0.2% 0.3%

Equity in Earnings

0.9% 0.8% 0.8% 0.7% 0.0%

After Tax Other Income/Expense

0.0% 0.0% 0.0% 0.0% 0.0%

Discontinued Operations

0.0% 0.0% 0.0% 0.0% 0.0%

Net Income before Extraordinary Items/Preferred Dividends

6.9% 6.5% 6.3% 6.7% 5.9%

Extraordinary Items & Gain/Loss Sale of Assets

0.0% 0.0% 0.0% 0.0% 0.0%

Preferred Dividend Requirements

0.0% 0.0% 0.0% 0.0% 0.0%

Net Income after Preferred Dividends - available to Common

6.9% 6.5% 6.3% 6.7% 5.9%

64

BIBLIOGRAPHY

Web Resources

http://citehr.com

http://about.com

http://wikpedia.com

http://howstuffworks.com

Book Resources

WINNING - Jack Welch

What 7 best CEO’s Know – Jeffery A. Krames

Marketing Principles – Krishan Bhardwaj

MS Word 2007 in 21 Days – Peter Norton

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