Balanced Score Card

A balanced score card looks at the organisation from four different perspectives to measure its overall health. Reliance
Communications was plagued with a debt of around 45,000 crore and had become a part of the Structural Debt
Restructuring(SDR) Scheme, under which banks own 51% equity in the company.

The current objective for the company is to reduce its heavy debt and exit the SDR scheme, for which the strategy
undertaken is to shift from the current business model from B2C to a completely B2B mode.

This is done because the current wireless landscape in India is highly competitive and incurring major losses due to the
market disruption and tariff wars initiated by Reliance Jio.

Customer Perspective
After the withdrawal of the company from wireless communication sphere in November 2017, its customer base
reduced from 120 million to a mere 35,000. This was done to focus exclusively on the enterprise business service and
data centre aspect of the telecom sector in which the company seeks to develop its core competency. There is
discontentment in the previous wireless consumer base because the company has been accused of pocketing pre paid
balances, amounting to Rs 150 crores.

In December 2017, the share prices of the company soared 17 per cent higher after Mukesh Ambani stepped in to bail
out the debt-ridden firm by acquiring spectrum, tower, optical fibre network and other assets. RCom replenished bank
guarantees aggregating Rs. 774 crore with the Department of Telecommunications (DoT) , thereby ensuring that the
department does not cancel its licenses and spectrum 4 weeks ahead of tribunal’s deadline. This also led to an increase
of 2.3% in the stock prices. This move was made to signal to the market that the company is still thriving.

Financial
Debt reduction and exit the debt restructuring scheme is the financial objective of Reliance Communications. The
financial figures of the company though poor, the investors have good faith in which could be reflected from the
trends in the share prices of the company which once plummeted to Rs.7 are currently high Rs.20.

Internal Perspective
After the shift in business model, there has been a 94% reduction in the employee base of the company as there are
attempts made to become capex light as opposed to the fellow competitors in the telecom space. To deliver superior
quality services, Global Cloud Exchange (GCX), a subsidiary of Reliance Communications is building a network of
sea cables connecting India to Italy westward and Hong Kong eastward. The results from these internal interventions
are yet to materialise, but the positive surge in share prices indicates hope for the company.

Growth
With 3000 enterprise customers worldwide and an expected revenue of 1$ billion per year from Global Submarine
Cable business shows the direction the company is heading. The shift from B2C to B2B seems a revival track of
Reliance Communications. The market determined to cater the communication services including Yahoo, Google,
Twitter etc. in the near future also shows the good growth opportunity of the company