Académique Documents
Professionnel Documents
Culture Documents
Guide:
by:
Ms. Sinthiya
KALRA
Submitted
DASKHPREET SINGH
(0
5116659312)
CERTIFICATE
I, Ms. DAKSHPREET SINGH KALRA, Roll No. 05116659312 certify that the
PROJECT RESEARCH (FM)) entitled PERFORMANCE ANAYSIS OF MATRIX
CELLULAR is done by me and it is an authentic work carried out by me at MATRIX
CELLULAR. The matter embodied in this report has not been submitted earlier for the
award of any degree or diploma to the best of my knowledge and belief.
Countersigned
Programme Director/HOD
ACKNOWLEDGEMENT
EXECUTIVE SUMMARY
PROJECT TITLE: PERFORMANCE ANALYSIS OF MATRIX CELLULAR
ORGANIZATION: MATRIX CELLULAR LIMITED
Matrix
Cellular
Services
is
Delhi-based
company
providing
complete
telecommunication solutions for Indian travellers going abroad. Their services include
international SIM cards, 3G data cards and wireless communication for use in India and
abroad. Their vision and effort to connect the Indian outbound traveller individuals,
students and corporate - with a convenient, cost-effective mobile and data service have
enabled us to become the undisputed market leader.
Objective of the study is to analyse the performance of the company using ration analysis
and common size statement. Although there are many other methods of analysing the
performance of the company, in this project only 2 main methods are used.
In findings many items are increasing and many are decreasing due to some or the other
reason. The overall performance of the year 2012 was much better than the performance
of 2013.
The present financial status of the company is not so good because there are many
important items in the balance sheet and profit and loss account that are affected badly
due to many factors. The economy of the country also affected the performance of the
company. Inflation can be the major reason for the downfall, not only this but the
increase in competition also affected the company badly.
CONTENTS
S No
Topic
Page No
Certificate
Acknowledgement
Executive Summary
List of Tables
Chapter 1 Introduction
24
27
32
61
Bibliography
LIST OF TABLES
Table No
Title
Page No
4.1
33
4.2
4.3
Profit and Loss Account for the year ending 2012 & 42
2013
4.4
CHAPTER -1
INTRODUCTION
1.1COMPANY PROFILE
1.1.1 About Matrix cellular
Started in 1995, Matrix Cellular Services is a Delhi-based company providing complete
telecommunication solutions for Indian travellers going abroad. Their services include
international SIM cards, 3G data cards and wireless communication for use in India and
abroad. Their vision and effort to connect the Indian outbound traveller individuals,
students and corporate - with a convenient, cost-effective mobile and data service have
enabled
us
to
become
the
undisputed
market
leader.
travelling
to,
people
enjoy
better
coverage
and
connectivity.
They offer destination-specific SIM cards for Argentina, Australia, Austria, Belgium,
Brazil, Canada, China, France, Germany, Greece, Hong Kong, Holland, Italy, Japan,
Malaysia, Mauritius, Mexico, New Zealand, Singapore, South Africa, South Korea,
Spain, Switzerland, Sri Lanka, Taiwan, Thailand, U.A.E., U.S.A. and U.K.
Since inception, they have aimed to be the best in service, quality, innovation and choice.
7
Even today, they are dedicated to the same. They are also constantly increasing their
portfolio of countries and focusing on unique communication solutions. This way people
stay connected wherever they are and that too, without being concerned by exorbitant
international roaming expenses.
Mobility Voice & Data Services across all India footprints covering all 23
1.1.2Partners
The company has a strategic alliance with SingTel. The investment made by SingTel is
one of the largest investments made in the world outside Singapore, in the company.
The companys mobile network equipment partners include Ericsson and Nokia. In the
case of the broadband and telephone services and enterprise services (carriers),
equipment suppliers include Siemens, Nortel, Corning, among others.
1.1.3Company Background
Matrix cellular Limited, a part of Matrix cellular, is Indias leading provider of
telecommunications services. The businesses at Matrix cellular have been structured into
three individual strategic business units (SBUs) mobile services, broadband &
telephone services (B&T) & enterprise services. The mobile services group provides
GSM mobile services across India in 23 telecom circles, while the B&T business group
provides broadband & telephone services in 94 cities. The Enterprise services group has
two sub-units carriers (long distance services) and services to corporate. All these
services are provided under the Matrix cellular brand.
GAGAN DUGGAL as he is called has at the age of 43 created a Telecom
Giant in India and international level. It has risen from humble beginnings in 1999s as
international sim card and 3G providers. Together with other foreign companies he has
raised $ 0.5 billion of which $ 100 million is still in the bank.
Indias premier telecom company in the field of telecom terminals and technology
tie ups with world leaders like Siemens, Goldstar, Tatacom and Casio. It is the first
company in India to export telephones to U.S.A and has finalized plans to
manufacture GSM terminals in India.
Matrix cellular controls about 20% of the Total Telecom market in India. As he puts it, it
was a mixture of vision, good luck and hard work by a team of about 10 12 senior
people. The early beginnings in 1985 were in manufacturing telephone handsets. They
did not have the expertise to do telephone exchanges, jelly- filled cables had become a
commodity and their capital investment was high.
1.1.4 Milestones
Telecom Services
150,00,0subscribers.
MATRIX CELLULAR Biggest footprint in India covering 32 country and
Seychelles.
First Private Company to have Fiber Gateway for Data & Voice at Chennai & 7
Ku Band Gateway for Internet bandwidth.
TELEVENTURES
10
Mobility Leaders
Infotel Leader
11
INDIAN SOLUTION:
Enjoy seamless connectivity and flexible post-paid talk plans in India with Matrix.
Become a new Vodafone post-paid mobile customer with Matrix.
Matrix is associated with one of the most dynamic and efficient networks in India Vodafone Essar. We provide local post-paid mobile services, Blackberry solutions and
data connections for Delhi and the National Capital Region.
Our post-paid connections come with all the facilities namely, national and international
roaming, data cards, GPRS and other Value-added services. That's not all! You get access
to 24x7 toll free customer care, get a dedicated Account Manager, and get value added
services activated at minimal time and enjoy many more conveniences.
Services:
12
Communicate, whenever you want to, not just in plain words, but also in more exciting,
innovative yet simple new ways. Choose from our range of services like Caller tunes,
Missed Call Information, Vodafone Alerts, and Call Filter Service.
Excellent customer service:
24/7 toll free customer care with dedicated account managers.
Get a Matrix student mobile connection before departure. They offer international SIM
cards for students going to U.K., U.S., Australia, France, Singapore and Germany.
They offer post-paid local mobile numbers with excellent tariff plans and free minutes of
talk time. Payments can be made in Indian Rupees. We also offer special offers for
parents going abroad to visit their children. With the facilities we offer, huge international
roaming bills, expensive call rates, limitations of pre-paid SIM cards and landlines will
be a thing of the past for the students.
13
Matrix 1 SIM allows an Indian traveler to roam the world with a single mobile
connection. Our international roaming SIM card allows you to take your GSM
mobile phone overseas, without incurring high roaming charges.
All you need to do is replace your phone's existing SIM card with Matrix 1 SIM
card when you travel abroad. Receive free incoming calls in 50 countries. With a
Matrix 1 SIM international mobile service, enjoy seamless connectivity in over
130 countries.
The Matrix global SIM uses Call back technology to ensure you get the lowest
rates. It works like your normal mobile phone, with the exception of a minor
difference when making a call. Receiving a call on the SIM card is the same as
receiving a call on any normal mobile phone.
CORPORATE SOLUTION:
Matrix enables you to stay connected to your business when you are traveling
overseas. We offer a full range of voice and data communication solutions that are
tailored to fit your particular needs.
14
3G CARD SLOUTION:
Get instant access to your e-mail and internet when traveling abroad. With a Matrix 3G
data card, you can now work anytime and anywhere; at mobile broadband speeds.
Matrix international 3G data cards are the perfect solution if you:
Travel regularly - get to your hotel and check your emails
Study - get your work done in the library or Wi-Fi hot spots
Receive high internet usage bills while traveling abroad.
Matrix can provide your company the backbone to expand your network coverage and
help you increase SIM stocks of global networks which is required to enter the market as
15
the low-cost player. This will give you the ability to deliver your product to more
people, faster and more reliably, and without investment in any costly infrastructure.
Key benefits:
Worldwide coverage
through direct operator relationships and partner channels, we have got it covered! We
can provide country-specific Post-Pay-Sims for more than 25 networks around the world.
Taking the cost out of your procurement system:
Matrix covers the complete aspect of purchasing and supply management. Dealing with
various international networks is a time-consuming process that can run into months and
possibly with no contract at the end. We spend our time and procurement expertise to
source SIMs for our multiple clients. In addition there is no minimum order quantity; you
can order either one or hundred.
Low tariffs:
The bottom line is lower calling costs. Our understanding of the mobile rental industry
enables us to negotiate better tariffs suitable for you. Due to the high volume of purchase,
(in most cases the rates we offer are cheaper than buying directly from the network) and
low operating costs (our back offices are in India), we can offer you some of the cheapest
call rates. Call volume is
Total flexibility for your business:
16
As mobile phone markets continue to change, retaining existing customers while adding
new ones requires intelligent, aggressive marketing strategies. Your success depends
largely
upon
retaining
and
growing
your
customer
base.
Matrix can provide your company the backbone to expand your network coverage and
help you increase SIM stocks of global networks which is required to enter the market as
the low-cost player. This will give you the ability to deliver your product to more
people, faster and more reliably, and without investment in any costly infrastructure.
MOBILE
We offer you mobile solutions targeted for your business needs. We create price
plans that work for your business along with a range of features.
VOICE
Our voice services give you the right tools, to suit the needs of small, medium and
large enterprises and to stay ahead.
PRA for COMPANY NAME/Group
1) PRI (PRIMARY RATE INTERFACE)
2) 30 Channels of 64 kbps on 2 pair of wires.
OFFICE SOLUTION:
Manage your business more efficiently and effectively, with Matrix cellulars
Office Solutions, Easy Mail and Data Card.
DATA & INTERNET:
They bring you a comprehensive suite of data technologies for all your strategic
connectivity needs.
1) Analog Phone Line
2) ISDN BRI
3) ISDN PRI DID/DOD Service
4) Host of Value Add Services
5) Voice Mail Service
6) CENTREX Facility
17
E-BUSINESS SERVICES
They offer you a range of services that help to keep your business running 24x7.
SATELLITE SERVICES
They provide you connectivity, where ever you take your business. Our Satellite
Services bring you the benefits of access in remote locations.
CARRIER SERVICES
Indias first private long distance communications service provider with worldclass Voice and Data communication services.
INTERNATIONAL SERVICES
Get the communication solutions, business needs, to stay connected worldwide
with their International Services.
1.3 Awards
Awards & Accolades
In the last 16 years, Matrix has carved a niche for itself as a telecom consultant to
International travellers. Matrix has always believed in innovating new products and
services to suit the market needs and enhancing the travel experience of every Indian
going abroad. The most important factor that contributed Matrix an award winning
company is its focus on smart and easy solutions for its customers.
Matrix has been acknowledged with many prestigious awards, such as:
Innovative Product International Mobile Connections and Data Products by
Economic Times Telecom Awards ("2011 & 2012")
18
1.4 HEADQUATERS
MATRIX CELLULAR
Head Office
Matrix Cellular (International)
Services Pvt Ltd
7 Khullar Farms, Mandi Road
Mehrauli, New Delhi
Email: info@matrix.in
Contact No: 0911126800000
Zip Code: 110030
Branch Office
Space No. 17 to 24,
Ground Floor, Block "F",
American Plaza,
International Trade Tower,
19
Nehru Place,
New Delhi
Contact No: 9873250513
Zip Code: 110019
International Offices
Bangladesh
Matrix Cellular,
69, Suhrawardy Avenue
Baridhara
Dhaka 1212
Bangladesh
Contact No: +880 1975006186 and +880 1975006185
Singapore
Matrix Cellular Pte.
1003 Bukit Merah Central
Singapore 159836
Contact No: +65 6818 2600
Email: info@matrix.sg
20
UNICONNECT
Started in October 1996
2nd company to venture in this market segment.
UNICONNECT was established in 1983 as an investment vehicle, however, it
eventually moved into the emerging telecom sector
CLAY TELECOM:
1stApril 2000 Clay telecom was setup.
Incepted nearly a decade ago, Clay Telecom is a dynamic global provider of wireless
telecom solutions - catering to both B2B and B2C market segments
RELIANCE COMMUNICATIONS:
27 December 2002, Reliance infocomm inaugurated.
21
Banks:
American Express
Citibank, etc.
Media:
BBC
CNN
Times of India, etc.
Corporate Houses:
Reliance Industries
Hero Honda
TATA Motors, etc.
22
Travel Fraternity:
British Airways
Jet Airways
CHAPTER -2
SWOT ANALYSIS
23
2.1 STRENGTH
2.2 OPPORTUNITIES
24
4. 6,000,000 people fly abroad every year this can be tapped by Matrix.
2.3 WEAKNESSES
2.4 THREATS
1. New players like UNI connect, Clay, Reliance Communication and Airtel are
entering into the market.
2. Changes in Government Policy.
25
LITERATURE REVIEW
John Mills and Ken Platts- Performance measurement (as promoted in the literature and
practiced in leading companies) refers to the use of a multi-dimensional set of
performance measures. The set of measures is multi-dimensional as it includes both
financial and non-financial measures, it includes both internal and external measures of
performance and it often includes both measures which quantify what has been achieved
as well as measures which are used to help predict the future.
Mike Bourne* and Andy Neely- Performance measurement is now being used to assess
the impact of actions on the stakeholders of the organization whose performance is being
measured. Although this can be considered as quantifying the efficiency and
effectiveness of action, in the case of measuring the impact of the organizations
performance on customer satisfaction, it is not as obvious in the cases of measuring the
impact of the organizations actions and performance on employee satisfaction or local
community satisfaction.
26
27
CHAPTER -3
RESEARCH
METHODOLOGY
28
29
For the proper analysis of data simple statistical techniques such as percentage
were use. It helps in making more generalization from the data available. The data
which will be collected from a sample of population was assumed to be
representing entire population was interest.
Demographic factors like age , income and educational background was used for
the classification purpose.
The study undertaken is based on the secondary data i.e data from authenticated websites
and journals and company itself for the latest updates just to gain an insight for the views
of various experts.
The data collected is in the form of tables to make the things presentable and more
effective. The results will be shown by tables which will help me out in making easy and
effective presentation and hence results will be obtained.
30
In this study the technique used for interpreting the results are Common Size statements
of Balance Sheet and Profit & Loss Account, Ratios (profitability ratios and liquidity
ratios etc.)
31
MEANING
Common size financial statements are the statements in which amounts of individual
items of Balance Sheet and Statement of profit and Loss for two or more years are
written. These amounts are further converted into percentages to a common base.
32
CHAPTER -4
DATA ANALYSIS
33
PARTICULARS
Mar '13
Mar12
1,898.80
1,898.80
0.00
1,898.80
1,898.80
0.00
0
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Reserves
48,712.50
46,868.00
Revaluation Reserves
Networth
0.00
50,611.30
0.00
48,766.80
Secured Loans
12,089.30
7,670.50
Unsecured Loans
Total Debt
Minority Interest
Policy Holders Funds
Group Share in Joint Venture
Total Liabilities
56,933.90
69,023.20
2,769.50
0.00
0.00
122,404.00
48,979.60
56,650.10
2,856.30
0.00
0.00
108,273.20
Sources Of Funds
34
PARTICULARS
Mar '13
Mar '12
Gross Block
133,582.10
128,874.30
0.00
133,582.10
0.00
1,815.60
130.80
6,373.50
2,030.00
0.00
128,874.30
0.00
622.40
213.90
5,492.90
883.90
8,534.30
6,590.70
13,129.60
0.00
10,345.40
73.60
21,663.90
0.00
33,804.60
853.00
34,657.60
-12,993.70
0.00
0.00
0.00
122,404.00
21,526.60
133.27
17,009.70
0.00
38,115.20
118.00
38,233.20
-21,223.50
0.00
0.00
0.00
108,273.20
16,509.40
128.42
Application Of Funds
35
PARTICULARS
Mar'13
Mar'12
SOURCES OF FUNDS
Total Share Capital
Equity Share Capital
Share Application Money
Preference Share Capital
Init. Contribution Settler
Preference Share Application Money
Employee Stock Option
Reserves
1.55
1.55
0
0
0
0
0
39.8
1.75
1.75
0
0
0
0
0
43.3
Revaluation Reserves
36
Net worth
Secured loans
Unsecured Loans
Total Debt
Minority Interest
Policy Holders Funds
Group Share in Joint Venture
Total Liabilities
PARTICULARS
41.35
9.88
46.51
56.39
2.26
0
0
100
Mar'13
45.04
7.08
45.24
52.32
2.64
0
0
100
Mar'12
APPLICATION OF FUNDS
Gross Block
Less: Accum. Depreciation
Net Block
Capital Work in Progress
Investments
Inventories
Sundry Debtors
Cash and Bank Balance
Total Current Assets
Loans and Advances
Fixes Deposits
Total CA, Loans & Advances
Deferred Credit
Current Liabilities
Provisions
Total CL & Provisions
Net Current Assets
Miscellaneous Expenses
Total Assets
INTERPRETATION:
109.13
0
109.13
0
1.483
0.106
5.21
1.66
6.97
10.73
0
17.7
0
27.62
0.7
28.31
-10.61
0
100
119.02
0
119.02
0
0.57
0.197
5.07
0.82
6.09
9.55
0.07
15.7
0
35.2
0.12
35.31
-19.6
0
100
1) Share capital
In year 2012 Total share capital is 1.75% where as in year 2013 it is comparatively
less i.e. 1.55% which means that may be the funds are used to buy the fixed assets of
the company. There is neither share application money nor preference share capital
nor preference share application money. So, from this we can that the equity share
capital has been reduced by 0.2% in 2013.
37
2) Reserves
In the year 2012, reserves were 43.3% and is has been reduced in 2013 i.e. in 2013
the reserves are 39.8% which means that reserves are utilized by the company for
some purpose therefore, it is reduced by 3.5%. There are no revaluation reserves in
the company.
3) Net Worth
Due to the reduction in total share capital and reserves, the overall net worth of the
company also reduced. It is seen that in 2012 the net worth was 45.04%, whereas in
2013 it is reduced to 41.35% only. However, a deficit net worth can negatively
influence future financing opportunities and stifle future business growth.
4) Debt
The secured as well as the unsecured loans have been increased in 2013. The secured
loans are increased by 2.8% where as the unsecured loans are increased by 1.27%.
Increase in secured loans is more than unsecured loans. Secured loans are generally
taken from banks and unsecured loans from any third party.
5) Gross block
In 2012 it was 119.02% and in 2013 it is 109.13% i.e. there is reduction in gross
block or we can say the fixed assets at cost. This may be due the reason that the
company has sold some of its fixed assets. There is a reduction of 9.89%.
38
6) Investments
Investments of the company are increased in the year 2013 i.e. 1.48% where as in
2012 it was just 0.57%. Therefore there is an increase in investment by 0.91% which
is good for a company. The company can invest in property, equity instruments,
debentures or bonds or mutual funds.
7) Inventories
In year 2012 the inventories were 0.197% as compared to 0.106% in the year 2013.
There is decrease in inventories by 0.091%. Decrease in inventory indicates that
inventory level are not keeping pace with the sales and the cost of goods sold is more
and there is less level of stock available in the company at present.
8) Sundry Debtors
In 2012 the debtors were 5.07% which is increased to 5.21% in 2013. This is good for
a company to have more debtors i.e. more inflow of cash in the business which
ultimately increase the assets of the company. There is an increase by 0.0.41% in the
debtors of the company.
39
40
In 2012, current liabilities were 35.20% and in 2013 it has reduced to 27.62%. So
there is a decrease in current liabilities by 7.58%. Decrease in current liabilities is
good for the company as one of the aims of the company is to reduce the amount of
liabilities. Current liabilities include unpaid dividends, unpaid interest, income
received in advance or income accrued and due on borrowings, provision for doubtful
debts etc.
14) Provisions
In 2012 provisions were 0.12% only and in 2013 it has increased to 0.70%. Thus
there is an increase of 0.58%. This figure is added to current liabilities to get the total
of current liabilities and provisions.
PARTICULARS
Mar13
Mar12
Income
Sales Turnover
Excise Duty
Net Sales
Other Income
Stock Adjustments
Total Income
Expenditure
71,505.80
0
71,505.80
-1,776.70
0.00
69,729.10
59,467.20
0.00
59,467.20
1,722.10
0.00
61,189.30
41
Raw Materials
Power & Fuel Cost
Employee Cost
Other manufacturing expenses
Selling and Admin Expenses
Miscellaneous expenses
Preoperative Exp capitalised
Total Expenses
0.00
0.00
3,515.90
25,495.90
7,400.40
18,781.70
0.00
55,196.90
816.90
0.00
3,278.40
20,188.10
5,550.50
9,661.90
0.00
39,495.80
Operating Profit
PBDIT
Interest
PBDT
Depreciation
Other Written Off
Profit Before Tax
extra-ordinary items
PBT (Post Extra-ord Items)
Tax
Reported Net Profit
Minority Interest
Share of P/L Of Associates
Net P/L After Minority Interest & Share Of
23,704.90
21,928.20
4,082.80
17,845.40
13,368.10
0.00
4,477.30
282.60
4,759.90
2,542.80
2,217.10
0.00
0.00
19,971.40
21,693.50
2,534.90
19,158.60
8,698.00
1,508.60
8,952.00
38.50
8,990.50
1,817.50
7,173.00
0.00
0.00
Associates
Total Value Addition
Preference Dividend
Equity Dividend
Corporate Dividend Tax
Per share data (annualised)
Shares in issue
Earning Per Share (Rs.)
Equity Dividend (%)
Book Value(Rs.)
1,934.50
47,800.90
0.00
379.80
61.60
7,128.80
38,678.90
0.00
379.80
61.60
37,975.30
5.84
0.00
133.27
37,975.30
18.89
0.00
128.42
PARTICULARS
Income
Sales Turnover
42
Mar'13
Mar'12
100
100
Excise Duty
Net Sales
Other Income
Stock Adjustments
Total Income
Expenditure
Raw Materials
Power & Fuel Cost
Employee Cost
Other manufacturing expenses
Selling and Admin Expenses
Miscellaneous expenses
Preoperative Exp capitalised
Total Expenses
Operating Profit
PBDIT
Interest
PBDT
Depreciation
Other Written Off
Profit Before Tax
extra-ordinary items
PEOT (Post Extra-ord Items)
Tax
Reported Net Profit
Minority Interest
Share of P/L Of Associates
Net P/L After Minority Interest & Share Of
0
100
-2.48
0
97.51
0
100
2.89
0
102.9
0
0
4.92
35.65
10.35
26.27
0
77.19
33.15
30.66
5.71
24.96
18.69
0
6.26
0.39
6.65
3.56
3.1
0
0
1.37
0
5.51
33.94
25.8
16.24
0
66.42
33.59
36.47
4.26
32.22
14.62
2.57
15.05
0.06
15.12
3.06
12.06
0
0.009
Associates
Total Value Addition
Preference Dividend
Equity Dividend
Corporate Dividend Tax
Per sher data (annualised)
Shares in issue
Earning Per Share (Rs)
Equity Dividend (%)
2.71
66.85
0
0.53
0.09
11.99
65.04
0
0.64
0.1
53.11
0.008
0
63.86
0.032
0
INTERPRETATION:
43
1) Sales Turnover
In year 2012 the amount of sales was Rs 59,467.20 and in year 2013 it is 71,505.80.
That means there is an absolute increase in the sales of the company. Now taking
sales as base and calculating the percentage of other items.
2) Total Income
In year 2012 it was 102.30% whereas in year 2013 it is reduced to 97.51%. This
decrease is due to other incomes (except sales turnover, stock adjustments and excise
duty) that are in negative in year 2013.
3) Raw Material
In year 2012 the raw material with the company was 1.37% and in year 2013 it is
totally zero i.e. there is no raw material with the company at present. Thus the raw
material is reduced by 1.37%.
4) Employee Cost
In year 2012 the employee cost was 5.51 and in 2013 it was decreased to 4.92%. So
there is a reduction of total 0.59%.
44
In year 2012 it was 33.94% and it increased in 2013 to 35.65% which means an
increase of 1.71% in other manufacturing expenses (except raw material, power and
fuel and employee cost).
6) Miscellaneous Expenses
In 2012 it was 16.24% and in 2013 it was increased to 26.27%. This means that there
were many other expenses occurring in the business which cannot be listed. There is
an increase of 10.03% in miscellaneous expenses.
7) Total Expenses
With the increase or decrease in the items under expenditure head, the overall effect
of expenditure is positive. It has increased by 10.77%. In 2012 it was 66.42% and in
2013 it is 77.19%. That means that with the reduction in total incomes, the
expenditure of the company is increasing.
8) Operating profit
There is a marginal decrease in operating profit as in 2012 it was 33.59% and in 2013
it is 33.15% So there is a marginal reduction of 0.44% in operating profit.
PBDIT(profit before dividend, interest and tax)- it is reduced by 5.81%
Interest- it is increased by 1.45%
PBT(profit before tax)- reduced by 8.79%
PEOI(post extra ordinary items)- it is again reduced by 8.47%
9) Net Profit
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With the increase or decrease of items under operating profit the overall result on net
profit is hugely affected in a negative manner. It means that the net profit is reduced
by 8.96% which is a very huge value. This means that the profit earned is not that
much high as in the previous years. So the company needs to take necessary actions
to reduce the expenditure and increase the incomes so that the profits would be more.
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Mar12
278.01
Mar13
546.68
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PARTICULARS
RECEIVABLE TOR
Mar12
13.71
Mar13
12.05
INTERPRETATION: It was observed that from debtor turnover ratio that receivables
around the sales were less. Receivable turnover ratio in 2012 was increased because
average debtors were reduced and net sale is being increased. It concludes that over
investment in the debtors which adversely affect on requirement of the working capital
finance and cost of such finance.
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PARTICULARS
CURRENT ASSETS TOR
Mar13
0.62
Mar12
0.74
INTERPRETATION- It was observed that current assets for does not indicate any trend
over a period of time. Turnover ratio in year 2012 was 0.74 which decreased in the
current year 2013 i.e. 0.64 because of high cash balance. Cash did not help to increase in
sales volume, as cash is not earning asset.
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patents, trademarks, computers etc. It is calculated by dividing the sales with fixed
assets:
Fixed Assets TOR = Sales_____
Fixed Assets
PARTICULARS
FIXED ASSETS TOR
Mar13
1.06
Mar12
0.91
INTERPRETATION- It was observed that fixed assets for does not indicate any trend
over a period of time. Turnover ratio in year 2012 was 0.91 which increased in the current
year 2013 i.e. 1.06 because of purchase of any asset.
2) LIQUIDITY RATIOS
CURRENT RATIO
This ratio shows short term financial soundness of the business. It is calculated by
dividing current assets with current liabilities:
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PARTICULARS
CURRENT RATIO
Mar13
0.38
Mar12
0.44
QUICK RATIO
This ratio is a fairly stringent measure of liquidity. It is calculated by dividing quick
assets with current liabilities. It is based on those current assets which are highly liquid.
Quick assets are calculated by subtracting inventories, prepaid expenses and fictitious
assets from current assets.
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PARTICULARS
QUICK RATIO
Mar13
0.47
Mar12
0.32
INTERPRETATION- According to general rules, the ideal quick ratio is 1:1. Higher the
quick ratio, better the short term financial position. Here in 2012 the ratio is 0.32:1 and it
has increased to 0.47:1. So its increase is good but it should be 1:1 for a company like
Matrix.
3) SOLVENCY RATIOS
DEBT- EQUITY RATIO
This ratio assesses the long term financial position and soundness of the long term
financial policies of the firm. It is calculated by dividing debt with equity:
DEBT EUITY RATIO = DEBT__
EQUITY
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PARTICULARS
DEBT EQUITY RATIO
Mar13
1.16
Mar12
1.36
INTERPRETATION- According to general rules, lower the debt equity ratio, higher the
degree of protection enjoyed by the lenders. In this case also, in 2012 the ratio was 1.36
and in 2012 it has been decreased to 1.16. So it is good for the company as the lenders
enjoy the degree of protection.
PARTICULARS
LONG TERM
Mar13
DEBT 1.16
Mar12
1.36
EQUITY RATIO
PARTICULARS
Mar13
INTERST
COVERAGE 8.55
Mar12
5.37
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RATIO
INTERPRETATION- According to general rules, higher the ratio, more secure the lender
is in respect of payment of interest regularly. In this case the ratio in 2013 is more than in
2012 by 3.18 times. Individually in year 2013 its good as it is almost the ideal ratio for
interest coverage.
4) PROFITABILITY RATIOS
GROSS PROFIT RATIO
This ratio indicates the relationship between the gross profit and net sales. Where
gross profit the difference between net sales and cost of goods sold. It is calculated by
dividing gross profit with net sales and multiplying it by 100. It is representes in
percentage (%) form.
GROSS PROFIT RATIO = GROSS PROFIT
* 100
NET SALES
PARTICULARS
Mar13
Mar12
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18.95
14.45
INTERPRETATION- According to general rules, higher the ratio, lower the cost of goods
sold. This is true in this case as here also the gross profit in 2013 is much higher than in
the year 2012 so the organization enjoys the advantage of lower cot of goods sold.
OPERATING RATIO
This ratio is calculated to assess the operational efficiency of the business. Where
operating expenses are calculated by adding employees benefit expenses and other
expenses (other than non operating expenses). It is calculated by dividing operating
profit with sales and multiplying it by 100. It is represented in percentage (%) form.
* 100
SALES
PARTICULARS
OPERATING RATIO
Mar13
33.15
Mar12
33.58
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* 100
NET SALES
PARTICULARS
NET PROFIT RATIO
Mar13
11.95
Mar12
7.05
INTERPRETATION- According to general rules, higher the net profit ratio, better the
business. Here in this case also the ratio is higher in 2013 i.e. 11.95% as compared to
7.05% in 2012.
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PARTICULARS
RETURN ON
Mar13
CAITAL 8.86
Mar12
9.72
EMPLOYED
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* 100
INTERPRETATION- In this case, the ROI in 2013 is little less than in 2012. Which
means that the overall performance in the current year is not that good than in the
previous year.
FINDINGS
&
CONCLUSION
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5.1 FINDINGS
1) In year 2012 Total share capital is 1.75% where as in year 2013 it is comparatively
less i.e. 1.55% which means that may be the funds are used to buy the fixed assets of
the company. So, from this we can that the equity share capital has been reduced by
0.2% in 2013.
2) In the year 2012, reserves were 43.3% and is has been reduced in 2013 i.e. in 2013
the reserves are 39.8% which means that reserves are utilized by the company for
some purpose therefore, it is reduced by 3.5%. There are no revaluation reserves in
the company.
3) Due to the reduction in total share capital and reserves, the overall net worth of the
company also reduced. However, a deficit net worth can negatively influence future
financing opportunities and stifle future business growth.
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4) There is reduction in gross block or we can say the fixed assets at cost. This may be
due the reason that the company has sold some of its fixed assets. There is a reduction of
9.89%.
5) Investments of the company are increased in the year 2013 i.e. 1.48% where as in 2012
it was just 0.57%. Therefore there is an increase in investment by 0.91% which is good
for a company.
6) Again there is an increase in cash and bank balances of the company i.e. in 2012 it
were 0.82% and in 2013 it has increased to 1.66%. The increase of cash and bank balance
is by 0.84%.
7) As there is increase in investments, cash and bank balance and sundry debtors but
reduction in inventories, the overall affect to current assets was positive i.e. there is an
increase in the current assets of the company. Each item affects the level of current assets
and therefore the increase or decrease percentage as well.
8) In 2012, current liabilities were 35.20% and in 2013 it has reduced to 27.62%. So there
is a decrease in current liabilities by 7.58%. Decrease in current liabilities is good for the
company as one of the aims of the company is to reduce the amount of liabilities. Current
liabilities include unpaid dividends, unpaid interest, income received in advance or
income accrued and due on borrowings, provision for doubtful debts etc.
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9) In case of total income, it is reduced to 97.51%. This decrease is due to other incomes
(except sales turnover, stock adjustments and excise duty) that are in negative in year
2013.
10) With the increase or decrease in the items under expenditure head, the overall effect
of expenditure is positive. It has increased by 10.77%. In 2012 it was 66.42% and in 2013
it is 77.19%. That means that with the reduction in total incomes, the expenditure of the
company is increasing.
11) There is a marginal reduction of 0.44% in operating profit.
PBDIT(profit before dividend, interest and tax)- it is reduced by 5.81%
Interest- it is increased by 1.45%
PBT(profit before tax)- reduced by 8.79%
PEOI(post extra ordinary items)- it is again reduced by 8.47%
12) With the increase or decrease of items under operating profit the overall result on net
profit is hugely affected in a negative manner. It means that the net profit is reduced by
8.96% which is a very huge value.
13) It was observed that from debtor turnover ratio that receivables around the sales were
less. Receivable turnover ratio in 2012 was increased because average debtors were
reduced and net sale is being increased.
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14) It was observed that fixed assets for does not indicate any trend over a period of time.
Turnover ratio in year 2012 was 0.91 which increased in the current year 2013 i.e. 1.06
because of purchase of any asset.
15) Here in 2012 the ratio is 0.44:1 and in 2013 it has reduced to 0.38:1 which means its
less than the ideal ratio. In this case the ratio doesnt show the idealness of funds.
16) Here in 2012 the ratio is 0.32:1 and it has increased to 0.47:1. So its increase is good
but it should be 1:1 for a company like Matrix.
17) Here the gross profit in 2013 is much higher than in the year 2012 so the organization
enjoys the advantage of lower cot of goods sold.
18) Here in this case also the ratio is declining by 0.38% which means that there is not
much higher margin which ultimately increases the profits not by much value.
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5.2 CONCLUSION
Competition in telecom industry is heating up its time for Indian telecom players also to
align up in the new dynamic business environment.
Telcom majors should think to launch the product according to the needs of customers to
satisfy them and make them brand loyal as very soon this blue ocean of Indian telecom
scenario will convert into red ocean where the loss of is the gain of other .They should
also think for searching new space or we can say either creating a new blue space to
sustain their growth in long run.
There is more room for data analysis but the rest of the part is beyond the scope of this
project report According to the results, the most important determinant for consumers are
price and sacrifice perception (monetary and non-monetary sacrifice), which in
perception. These are periodical fixed cost, minute or traffic charge and opening cost
when purchasing mobile phone connection. The results indicate that the per second
charge is the most influential factor when a customer assesses to purchase. The second
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most important factor is the periodical fixed cost and another factor is the opening cost.
These indicate, not surprisingly, that communication firms need to deeply consider. Also,
this indicates that a lot of effort must be put in the pricing strategy.
Quality of service and the ability to attract and retain customers dictate the success or
failure of next-generation communications service providers. In todays competitive
environment, customers are quick to abandon services that do not meet expectations.
The ease with which customers can switch from their current service to another, demands
that providers deliver the highest possible levels of service quality and performance. To
be successful, communications service providers must deliver positive customer
experiences with rich, value-added services supported by comprehensive service quality
management. To this effect-Mobile service has experienced the negative attributes of not
being customer focused and realizes that quality is an attribute that creates customer
satisfaction profitably. Therefore quality must be fused with all resources channelled
towards their customers.
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BIBLIOGRAPHY
Documents:
http://www.moneycontrol.com/stocks/company_info/print_main.php
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http://www.moneycontrol.com/financials/matrixcellular/profit&lossaccount/PL12
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