TANUJ Final Project

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A Comparative Study of Ratio Analysis of Reliance & TataMobile Handsets

Submitted in partial fulfillment of the requirements

for the award of the degree of

Bachelor of Business Administration (BBA)

SemesterVI (Paper Code-BBA 310)

To

Guru Gobind Singh Indraprastha University, Delhi

Submitted To :

Guide: Mrs Anu AggarwalSubmitted by:Tanuj MalhotraBBA (E2)Enrolment No. :12524401709

Institute of Innovation Technology & Management,

New Delhi110058Batch (2009-2012)


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Certificate

I, Mr. Tanuj Malhotra Roll No. 12524401709 certify that the Project Report/Dissertation

(BBA-310) entitled A Comparative Study Of Ratio Analysis Of Reliance & Tata Mobile

Handsets is done by me and it is an authentic work carried out by me at Institute of

Innovation Technology & Management The matter embodied in this project work has not

been submitted earlier for the award of any degree or diploma to the best of my knowledge

and belief.

Signature of the Student :

Date: 20 April,2012

Certified that the Project Report/Dissertation (BBA-310) entitled A Comparative Study Of

Ratio Analysis Of Reliance & Tata Mobile Handsets done by Mr.Tanuj Malhotra Roll

No. 12524401709 is completed under my guidance.

Signature of the Guide

Date: 20 April 2012

Name of the Guide: Mrs. Anu Aggarwal

Designation: Assistant Profressor

Address: Institute of Innovation

Technology & Management, New

Delhi-110058

Countersigned

Director/Project Coordinator


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Acknowledgement

This Undertaking has received the whole hearted support of many individuals

Thus I want to express my sincere and deep sense of gratitude. I am thankful to

Institute Of Innoavtion In Technology & Management am deeply

indebted to my guide Mrs. Anu Aggarwal whose help, guidance, stimulating

suggestions, encouragement, professional advice and experience sharing helped

me all the time of study and writing of report

Tanuj Malhotra

12524401709


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CONTENTS

S No. Topic Page No.

1 Certificate 2

2 Acknowledgements 3

3 List of Figures 7-16-17-22-

234 Chapter-1: Introduction 5

5 Chapter-3: Data Presentation & Analysis 36

6 Chapter-4: Summary and Conclusions 48

7 References/Bibliography 54


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Chapter 1

Introduction

Profile Of The Organisation/Company

Nature Of Reliance Communications :

India s leading integrated telecom company Reliance Communications is the flagship

company of the Reliance Group. Our business encompasses a complete range of telecom

services covering mobile and fixed line telephony. It includes broadband, national and

international long distance services and data services along with an exhaustive range of

value-added services and applications.

Reliance Mobile (formerly Reliance India Mobile), launched on 28 December 2002,

coinciding with the joyous occasion of the late Dhirubhai Ambanis 70th birthday, was

among the initial initiatives of Reliance Communications. It marked the auspicious beginning

of Dhirubhais dream of ushering in a digital revolution in India

Reliance Communications Ltd. (commonly called RCOM) is an Indian broadband and tele

communications company headquartered in Navi Mumbai, India. RCOM is the world's 16th

largest mobile phone operator with over 150 million subscribers. Established on 2004, a

subsidiary of the Reliance Group. The company has five segments: Wireless segment

includes wireless operations of the company; broadband segment includes broadband

operations of the company; Global segment include national long distance and international

long distance operations of the company and the wholesale operations of its subsidiaries;

Investment segment includes investment activities of the Group companies, and Other

segment consists of the customer care activities and direct-to-home (DTH) activities.


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It ranks among the top 5 telecommunications companies. The company has established a pan-

India, next-generation, integrated (wireless and wire line), convergent (voice, data and video)

digital network that is capable of supporting services spanning the entire communications

value chain, covering over 24,000 towns and 600,000 villages. Reliance Communications

owns and operates the next-generation IP-enabled connectivity infrastructure comprising over

190,000 kilometers of fiber optic cable systems in India, USA, Europe, Middle East and the

Asia Pacific region

Reliance Communications and its Business :


company of the Reliance Group. Listed on the National Stock Exchange and the Bombay

Stock Exchange, it is Indias leading integrated telecommunication company with over 150

million customers.

Our business encompasses a complete range of telecom services covering mobile and fixed

line telephony. It includes broadband, national and international long distance services and

data services along with an exhaustive range of value-added services and applications. Our

constant endeavour is to provide an enhanced customer experience and achieve customer

satisfaction by up scaling the productivity of the enterprises and individuals we serve.

Reliance Mobile (formerly Reliance India Mobile), launched on 28 December 2002,

coinciding with the joyous occasion of the late Dhirubhai Ambanis 70th birthday, was

among the initial initiatives of Reliance Communications. It marked the auspicious beginning

of Dhirubhais dream of ushering in a digital revolution in India. Today, we can proudly

claim that we were instrumental in harnessing the true power of information and

communication, by bestowing it in the hands of the common man at affordable rates.


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We Endeavour to further extend our efforts beyond the traditional value chain by developing

and deploying complete telecom solutions for the entire spectrum of society.

Nature Of Tata Communications :

Tata Communications Limited is an Indian global telecommunications company located

in Mumbai. Tata Communications is a leading global provider of a new world of

communications. With a leadership position in emerging markets, Tata Communications

leverages its advanced solutions capabilities and domain expertise across its global and pan-

India network to deliver managed solutions to multi-national enterprises, service providers

and Indian consumers.

Communications is among the Tata Group's larger investments, with over $7.5 billion already

committed. The Group's objective is to provide end-to-end telecommunications solutions for

business and residential customers across the nation and internationally. Tata

Communications Ltd. is a part of the $83.3 billion Tata Companies; it is listed on the Bombay

Stock Exchange and the National Stock Exchange of India and its ADRs are listed on the

New York Stock Exchange (NYSE: TCL

The Group's communications activities are currently spread primarily over four companies-

Tata Teleservices Limited, its associate Tata Teleservices (Maharashtra) Limited, Tata

Communications (erstwhile VSNL) and Tata Sky. Together, these companies cover the full

range of communications services, including:


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Telephony Services: Fixed and Mobile Media & Entertainment Services: Satellite TV Data Services: Leased Lines, Managed Data Networks, IP/MPLS VPN, Dial-up

Internet, Wi-Fi and Broadband

Value-added Services: Mobile and Broadband Content/Applications, Calling Cards,Net Telephony and Managed Services

Infrastructure Services: Submarine Cable Bandwidth, Terrestrial Fiber Network andSatellite Earth Stations and VSAT Connectivity

Tata Communications Limited along with its global subsidiaries (Tata Communications) 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.

Our Values- Tata Communications

Service and business at Tata Communications is guided by a commitment to ethical and

responsible conduct.

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

transparency. Everything we do must stand the test of public scrutiny.

Understanding: Open the world : 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.


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Flexibility: Act agile : We work to create, design and grow in an environment that supports

our customers and people with adaptive thinking and action.

Excellence: Go the distance : 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: Journey as one : 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: Advance life : 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.

VISSION

Reliance Communications :

By 2015, be amongst the top 3 most valued Indian companies, providing Information,

Communication Entertainment services, and being the industry benchmark inCustomer

Experience, Employee Centricity and Innovation.

Tata Communications :

Deliver a new world of communications to advance the reach and leadership of our

customers.


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MISSION :

Reliance Communications :

Meeting and exceeding Customer expectations with a segmented approach Establishing, re-engineering and automating Processes to make them customer centric,

efficient and effective

Incessant offering of Products and Services that are value for money and excitecustomers

Providing a Network experience that is best in the industry Building Reliance into an iconic Brand which is benchmarked by others and leads

industry in Intention to Purchase and Loyalty

Developing a professional Leadership team that inspires, nurtures talent andpropagates RCOM Values by personal examples

To attain global best practices and become a world-class communication service providerguided by its purpose to move towards greater degree of sophistication and maturity.

To work with vigour, dedication and innovation to achieve excellence in service, quality,reliability, safety and customer care as the ultimate goal.

To earn the trust and confidence of all stakeholders, exceeding their expectations andmake the Company a respected household name.

To consistently achieve high growth with the highest levels of productivity. To be a technology driven, efficient and financially sound organization To be a responsible corporate citizen nurturing human values and concern for society, the

environment and above all, the people


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To promote a work culture that fosters individual growth, team spirit and creativity toovercome challenges and attain goals

To uphold the guiding principles of trust, integrity and transparency in all aspects ofinteractions and dealings.

Mission of Tata Communications

As an Innovative World class system engineering and integration company, we shall

provide sustainable advanced technology solutions and services to our global customers and

in project of national importance, maximising values to our shareholders and the

communities we serve

OTHER BUSINESS OF RELIANCE GROUP

Wireless

Mobile (CDMA & GSM)

VAS (Mobile World)

Wireless Data

Fixed Wireless

Public Access Business

Telecom Infrastructure

Multi tenancy towers

Pan-India coverage

Backhaul

Support systems


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Globalcom

Submarine cable

Ethernet Data services

Global Managed Network

Services

Long Distance (NLD/ILD)

Global Call

Enterprise

Internet Data Center

Broadband

Leased Line

Office Centrex

MPLS & VPN

WiMax

Home

DTH

IPTV

Other businesses

Tech Serives

Leveraging Internal IT

Development Capabilities

BPO

Expertise in Telecom

BFSI, Utilities & Media


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Retail

Reliance World

Reliance Mobile Store

Reliance Communications is Indias foremost and truly integrated

telecommunications service provider. The Company, with a customer base of over

85 million including over 2.2 million individual overseas retail customers, ranks

among the Top 5 Telecom companies in the world by number of customers in a

single country.

Reliance Communications corporate clientele includes 2,100 Indian

and multinational corporations, and over 800 global, regional and domestic carriers.

Reliance Communications has established a pan-India, next generation, integrated

(wireless and wireline), convergent (voice, data and video) digital network that is

capable of supporting best-of-class services spanning the entire communications

value chain, covering over 24,000 towns and 600,000 villages.

Reliance Communications owns and operates the worlds largest next generation

IP enabled connectivity infrastructure, comprising over 277,000 kilometers of

fibre optic cable systems in India, USA, Europe, Middle East and the Asia Pacific

region


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OTHER BUSINESS OF TATA GROUP

Tata Teleservices Limited spearheads the Tata Group's presence in the telecom sector. The

Tata Group includes over 90 companies, over 395,000 employees worldwide and more than

3.5 million shareholders.

Incorporated in 1996, Tata Teleservices is the pioneer of the CDMA 1x technology platform

in India. It has embarked on a growth path since the acquisition of Hughes Tele.com (India)

Ltd [renamed Tata Teleservices (Maharashtra) Limited] by the Tata Group in 2002. It

launched mobile operations in January 2005 under the brand name Tata Indicom and today

enjoys a pan-India presence through existing operations in all of India's 22 telecom Circles.

The company is also the market leader in the fixed wireless telephony market.

Tata Teleservices Limited has also become the first Indian private telecom operator to

launch 3G services in India under the brand name Tata DOCOMO, with its recent launch in

all the nine telecom Circles where it bagged the 3G license. In association with its partner

NTT DOCOMO, the Company finds itself favorably positioned to leverage this first-mover

advantage. With 3G, Tata DOCOMO stands to redefine the very face of telecoms in India.

Tokyo-based NTT DOCOMO is one of the world's leading mobile operatorsin Japan, the

company is the clear market leader, used by nearly 55 per cent of the country's mobile

phone users.

Tata DOCOMO marks a significant milestone in the Indian telecom landscape, and has

already redefined the very face of telecoms in India, being the first to pioneer the per-

second tariff optionpart of its 'Pay for What You Use' pricing paradigm. Tokyo-based

NTT DOCOMO is one of the world's leading mobile operatorsin the Japanese market, the

company is the clear market leader, used by over 50 per cent of the country's mobile phone

users.


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The Tata Teleservices Limited bouquet comprises four other brands as wellVirgin

Mobile, Walky (which is the brand for fixed wireless phones), the Photon family (the

company's brand that provides a variety of options for wireless mobile broadband access,

and T24. TTSL recently entered into a strategic partnership agreement with Indian retail

giant Future Group to offer mobile telephony services under a new brand nameT24on

the GSM platform. The exciting new brand was unveiled in February and the company

announced the commercial launch of GSM operations under the brand name T24 in June,

starting with the city of Hyderabad. It has now launched T24 GSM services in Kolkata,

Bhubaneswar, Lucknow and Ahmedabad.

Today, Tata Teleservices Ltd, along with Tata Teleservices (Maharashtra) Ltd, serves over

85 million customers in more than 450,000 towns and villages across the country, with a

bouquet of telephony services encompassing Mobile Services, Wireless Desktop Phones,

Public Booth Telephony and Wireline Services.

In December 2008, Tata Teleservices announced a unique reverse equity swap strategic

agreement between its telecom tower subsidiary, Wireless TT Info-Services Limited, and

Quippo Telecom Infrastructure Limitedwith the combined entity kicking off operations

with 18,000 towers, thereby becoming the largest independent entity in this spaceand

with the highest tenancy ratios in the industry. Today, the combined entitywhich has been

re-christened as VIOM Networkshas a portfolio of nearly 45,000 towers.

TTSL's bouquet of telephony services includes mobile services, wireless desktop phones,

public booth telephony, wireline services and enterprise solutions.


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OTHER BUSINESS OF RELIANCE GROUP

The Company operates on a pan-India basis and offers the fullvalue chain of wireless,

wireline, national long distance,international, voice, data, video, Direct-To-Home (DTH)

and internet based communications services under various businessunits organised into

three strategic customer-facing business units;Wireless, Global and Broadband. These

strategic business unitsare supported by passive infrastructure connected to nation wide

backbone of Optic Fibre Network fully integrated network operationsystem and by the

largest retail distribution and customer services facilities. The Company also owns through

its subsidiaries, a global submarine cable network infrastructure, managed services and

managed Ethernet and application delivery services. During the year under review, the

Company had launched GSM services in 14 service areas. The Company had received

start-up spectrum to launch GSM services from Department of Telecommunications (DoT)

under its existing Unified Access Service License (UASL) in 14 service areas. DoT had also

made necessary amendments to UASL of Reliance TelecomLimited (RTL), a whollyowned

subsidiary of the Company to enable RTL to offer CDMA services in Assam and North

East Service Area in addition to existing GSM services and made allotment of start up

spectrum to RTL for providing CDMA services in Assam and North East. During the year

under review, Reliance Big TV Limited, a wholly owned subsidiary of the Company

launched fully Digital Home Entertainment Direct To Home (DTH) Service on the most


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advanced MPEG 4 DTH Platform. Reliance Big TV Limited currently has 1.7 million

subscribers, about 12% of the DTH market in India within a short span of launch.

Geographical Region Of Reliance Communications :

Reliance Communications has expanded its Application Aware Network service to India,

which will help the enterprises to upgrade to an intelligent network.

Mr Punit Garg, Chief Executive, Global Enterprise Business, Reliance Communications,

said, As large enterprises need to support a geographically dispersed workforce and a greater

number of users and devices accessing applications across their network, the objective is to

improve the user experience. With Reliance's Application Aware Network, enterprises can

enjoy improved employee productivity, insights into their WAN and application

performance, and reduced IT costs.

The network offers visibility and control of application performance across networks and

raises WAN (wide area network) capacity by using traffic optimisation technologies. The

network upgrades and brings improvement in enterprise efficiency. The network has been

unveiled in collaboration with US-based IT performance multinational Riverbed.


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Geographical Region Of Tata Communications :

Tata Communications, a global communications service provider that owns and operates the

world's largest subsea cable network, today announces the launch of its TGN-Gulf subsea

cable system that will connect the Gulf to Mumbai, India and onward to the rest of the Tata

Global Network (TGN).

In partnership with Nawras of Oman, Etisalat of UAE, Qtel of Qatar, Bahrain Internet

Exchange of Bahrain, and Mobily of Saudi Arabia, the TGN cable system is the first TGN

cable to serve the Gulf region and will offer network access to UAE, Oman, Qatar, Bahrain

and Saudi Arabia, providing carriers and businesses with a direct route into the emerging

markets of the Gulf region. The TGN-Gulf cable system will provide companies based in the

region, and those looking to expand into these markets, with business-critical capacity for

broadband data and high quality voice services.

The TGN-Gulf cable system will initially offer speeds of up to 10G and a greater

geographical reach for Tata Communications' customers, providing a critical backbone for

economic development across the Gulf region.

Radwan Moussalli, Managing Director, Middle East and North Africa (MENA), Tata

Communications, says, "Tata Communications' global connectivity services are built on the

worlds largest and most advanced global submarine cable network available today, enabling

carriers and enterprises to connect across the globe. The TGN-Gulf subsea cable system will

act as the foundation for growth and technological innovation for businesses in one of the

fastest growing emerging markets in the world. It is well positioned to meet the ever-growing


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demand for high-bandwidth voice and data services, lower latencies, higher uptimes and

seamless scalability."

This new development is the latest in a series of expansions and upgrades to the TGN, and

makes Tata Communications the only provider to offer a truly global network through its

world-wide cable network. The cable network boasts significant depth in key emerging

markets including China, India, South Africa as well as the Gulf region and currently covers

nearly 20% of the world's internet routes reaching over 240 countries and territories.

The TGN-Gulf cable uses market-leading fibre optic connectivity to bring unmatched

capacity and secure, scalable high speed bandwidth to all the key cities in the region, and the

rest of the world. It will provide city-to-city connections in contrast to more traditional

networks which only link cable landing stations. This approach is more cost-effective,

flexible, provides a faster time to market and is easier to maintain and manage.

Tata Communications also today announces the completion of the worlds first wholly-

owned round-the-world fibre optic cable ring. In addition, its recently-announced global

technology association with Formula 1 and its public commitment to drive cross-network

video collaboration through Global Meeting Alliance reflect its drive to further

complement and strengthen its vision to deliver a New World of Communications to advance

the reach and leadership of its customers and partners across the globe.


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Size Of Reliance Communications

Reliance Communications Limited founded by the late Shri Dhirubhai H Ambani (1932-

2002) is the flagship company of the Reliance Anil Dhirubhai Ambani Group. The Reliance

Anil Dhirubhai Ambani Group currently has a net worth in excess of Rs. 63,000 crore (US$

14 billion), cash flows of Rs. 12,000 crore (US$ 3 billion), net profit of Rs. 8,000 crore (US$

Reliance Communications is India's foremost and truly integrated telecommunications

service provider. The Company, with a customer base of around 71 million including over 2

million individual overseas retail customers, ranks among the Top 10 Telecom companies in

the world by number of customers in a single country. Reliance Communications corporate

clientele includes 2,100 Indian and multinational corporations, and over 800 global, regional

and domestic carriers.

Reliance Communications has established a pan-India, next generation, integrated (wireless

GSM ^ CDMA Both ) and wireline), convergent (voice, data and video) digital network that

is capable of supporting best-of-class services spanning the entire communications value

chain, covering over 20,000 towns and 450,000 villages. Reliance Communications owns and

operates the world's largest next generation IP enabled connectivity infrastructure,

comprising over 175,000 kilometers of fiber optic cable systems in India, USA, Europe,

Middle East and the Asia Pacific region.Telecom Operator a pan-India, next generation,

integrated (wireless ( GSM ^ CDMA Both ) and wireline), convergent (voice, data and video)

Size Of Tata Commincations :

Tata Group is a Parsi multinational conglomerate company headquartered in Mumbai,

Maharashtra, India. It is one of the largest conglomerates in India by market
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capitalization and revenue. It has interests in communications and information technology,

engineering, materials, services, energy, consumer products and chemicals.

Tata Group has operations in more than 80 countries across six continents and its companies

export products and services to 80 nations. It comprises 114 companies and subsidiaries in

eight business sectors, 27 of which are publicly listed. 65.8% of the ownership of Tata Group

is held in charitable trusts. Companies which form a major part of the group include Tata

Steel (including Tata Steel Europe), Tata Motors(including Jaguar and Land Rover), Tata

Consultancy Services, Tata Technologies, Tata Tea(including Tetley), Tata Chemicals, Titan

Industries, Tata Power, Tata Communications, Tata Sons, Tata Teleservices and the Taj

Hotels

The group takes the name of its founder, Jamsedji Tata, a member of whose family has

almost invariably been the chairman of the group. The current chairman of the Tata group

is Ratan Tata, who took over from J. R. D. Tata in 1991. The company is currently in its fifth

generation of family stewardship. The group has more than 100 companies and Tata Sons is

the promoter of all key Tata companies and holds the bulk of shareholding in these

companies. The chairman of Tata Sons has traditionally been the chairman of the Tata group.

About 66% of the equity capital of Tata Sons is held by philanthropic trusts endowed by

members of the Tata family.

The 2009, annual survey by the Reputation Institute ranked Tata Group as the 11th most

reputable company in the world. The survey included 600 global companies. The Tata Group

has helped establish and finance numerous quality research, educational and cultural

institutes in India
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Turnover Of Relaince Communications :

Reliance Communications Limited (RCOM) today announced its audited consolidated

financial results for the year ended March 31, 2010. Highlights of the financial performance

for the year are:

Net Profit of Rs. 4,655 crore (US$ 991 million)

EBITDA at Rs. 7,821 crore (US$ 1,665 million), EBITDA margin at 35.3% with strong

contribution from all businessesWireless, Global and Enterprise

Revenue at Rs. 22,132 crore (US$ 4,713 million)

Commenting on the results, Mr Anil Dhirubhai Ambani, Chairman, Reliance

Communications Limited, said: The telecom industry has witnessed financial year 2010 as

one of the most challenging year. RCOM has undertaken several path breaking initiatives

both in GSM and CDMA services and we are confident that inspite of highly competitive

environment, we will be able to sustain profitable growth in the coming quarters.


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Turnover Of Tata Communications

Tata Communications Limited (Tata Communications) is a provider of business

communication solutions across the globe. The company provides a broad range of integrated

communication services, and global data and voice-based communication services and

related value-added services to retail, enterprise and carrier customers worldwide.

The company provides wholesale international voice services, including global submarine

cable networks. It also provides network services, data center, contact center, security

services, and Tata Communications has a customer base of about 1,600 global carriers and

service providers, 10,000 enterprises, 785 mobile operators, 275,000 broadband and internet

subscribers, and 500 Wi-Fi public hotspots. Tata Communications is headquartered in

Mumbai (Maharashtra), India

Market Position Of Reliance Communications

It was the year 2006- boom time in the Indian Mobile Industry. Sales were on the rise and

operators had been bombarding the public with promotional offers and value added services

in order to increase their subscriber base.


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Though India had a huge number of subscribers, it generated the lowest revenue in the world

due to the poverty of masses, high levels of industry specific taxes and inadequate margins

due to high levels of competition. The service providers operated using GSM or CDMA

technology.

Till 2003, a typical upper middle class household had an annual income of $10,000 to

$13,000 and acquiring a GSM handset required $60 while CDMA handsets required about

$80 and at times more. In spite of the low income levels, technology was an important

criterion for Indians. One in ten Indians had access to safe drinking water but one in three had

a color television and one in seven had a cable television.

To generate revenues in such a market, mobile operators had to concentrate on the upper

segment of the society and charge a premium pricing. This was the case until the entry of

Reliance, Indias largest business house, into the mobile industry in 2003. Reliance entered

the mobile market in a massive way through its subsidiary known as Infocomm and targeted

the mass market by adopting cost leadership strategy.

Though it faced a lot of teething problems in the initial stages, it was able to overcome them

all and achieve the second position in the Indian mobile market within a short span of time.

The success formula of Infocomm helped by changes in government policy enabled

Infocomms competitors to adopt a business model similar to that of Infocom.

The higher average revenue per user (ARPU) and economies of scale of GSM technology

also enabled the GSM competitors to realise a much higher profit than Infocomm, thus acting

as a serious threat to it. Due to this, the parent company of Infocomm planned to enter the

GSM segment as well. But it faced government restrictions which would limit its operations.


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It would also have to incur handset switching costs and infrastructure costs. This left the

company in a dilemma about the shift.

The case briefly examines the cost reduction strategies adopted by Infocomm. It also

discusses the strategic changes and the feasibility of its GSM venture.

Market Position Of TATA Communications

Tata Communications, a leading provider of The New World of Communications, today

revealed the findings of a unique research study into emerging markets and their impact on

the global economy. The report, conducted by independent research company Vanson

Bourne, surveyed 1,600 business leaders from ten global emerging and developed markets,

and reveals that 84% of companies in emerging markets have looked to other emerging

markets for growth lessons and best practice, highlighting the growing influence of

developing markets in the global economy.

Emerging market survey respondents (those from China, India, South Africa and the Middle

East) were asked which markets they felt offers most opportunity for rapid growth. China led

the pack at 51%, India at 46% and Brazil at 26%. Russia, more usually associated alongside

these markets, was listed in 8th place with just 11% of emerging market business leaders

feeling it offered rapid business growth.

87% of business leaders from both developed and emerging markets (China, India, South

Africa, France, Germany, Hong Kong, Singapore, the Middle East, the USA and the UK) are

actively engaging in emerging markets, despite 56% acknowledging that they associate

emerging markets with political instability. 55% of Singaporean respondents, 45% of Middle


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Eastern and 40% of South African businesses have already set up operations in emerging

markets, the only markets in the survey to have a higher figure with an established presence

than those considering such a move (e.g. India, China).

51% of all respondents stated that their organisation is looking at expanding into China, with

39% selecting India and 33 % Brazil. 62% of US companies are looking to China for growth

while the UK is set to be the biggest investor in Poland with 19% of UK respondents

selecting that market.

Product Range Of Reliance Communications

1 MOBILES


company of the Reliance Group. Listed on the National Stock Exchange and the Bombay

Stock Exchange, it is Indias leading integrated telecommunication company with over 150

million customers.

Our business encompasses a complete range of telecom services covering mobile and fixed

line telephony. It includes broadband, national and international long distance services and

data services along with an exhaustive range of value-added services and applications. Our

constant endeavour is to provide an enhanced customer experience and achieve customer

satisfaction by upscaling the productivity of the enterprises and individuals we serve.

2 Relaince IPTV

Reliance IPTV is powered by Microsoft Mediaroom, which is the preferred IPTV Platform

world over. Leading IPTV Service Providers like AT&T, BT, DT and SingTel operate on the

Mediaroom Platform. Features and functionalities on the Reliance IPTV differentiate us from


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all the other IPTV Players in the country. Reliance IPTV is uniquely placed to cater to the

growing & varied needs of consumers and become Indias leading IPTV service provider.

Reliance IPTV comes loaded with unique features and functionalities that are built to

provide the user an amazing TV experience.

3 Entertainment - Reliance Digital TV

Entertainment avenues in India today are expanding from mass entertainment to lifestyle

entertainment. Consumers are looking at the best life has to offer when it comes to

enjoyment, entertainment, expression and creativity. They are seeking products and services

that will create a rich, personalized and social media environment that maximize the limited

time available.Imagine a digital television service that suits you and your familys interests,

passions and busy schedules. Picture all of your favourite channels, shows, and movies at

your fingertipsits time to step into the BIG world of entertainment.

Reliance Digital TV presents the next landmark in entertainment in India. The launch of

Reliance Reliance Digital TV brings true digitization and a transformation of the current

television viewing experience, and marks a shift in the controls from the broadcaster to the

hand of the consumer.

Homes all over the country will witness a never before digital television viewing experience

with unlimited hours of fun and entertainment for the entire family. Consumers can now

experience fantastic features such as pure digital picture, digital sound, more channel choice,

multiple exclusive movie channels, easy programming guide, interactive services, parental

control, superior customer service and lots more.


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Product Range Of Tata Communications

The Tata group has a formidable presence in the telecom industry through three companies,

Tata Communications, Tata Teleservices and Tata Teleservices (Maharashtra). The telecom

offerings cover all segments, from retail and enterprise to wholesale and international, and

deliver a complete range of telecom solutions.

1 Fixed, wireless and public phones

Tata Teleservices bouquet of telephony services includes wireless desktop phones, public

booth telephony and wireline services. Other services include value added services such

as voice portal, roaming, post-paid internet services, 3-way conferencing, group calling, wi-fi

internet, USB modem, data cards, calling card services and enterprise services.

2 Internet Services

Tata Teleservices and Tata Communications together offer a wide spectrum of choices for

consumers and corporates for internet connectivity via dial-up, broadband and wi-fi access.

3 Mobile telephony

Tata Docomo's range of products and services includes mobile handsets, new voice and

data services such as BREW games, voice portal, picture messaging, polyphonic ring

tones, interactive applications such as news, cricket, astrology, etc. The company has

entered into a brand franchise agreement with the Virgin Mobile group and offers the

Virgin mobile product range in India.


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4 Telecom Solutions

The brand covers segments from retail and enterprise to wholesale and international, and

delivers a complete range of telecom solutions, including fixed, wireless and mobile

telephony; domestic and international long distance; integrated services digital network;

managed leased lines; virtual private networks; web conferencing; calling cards; and

international IP VPN services.

Having pioneered the CDMA 2000 1x technology platform in India, Tata Teleservices has

established a robust and reliable 3G ready telecom infrastructure that ensures quality in its

services. It has partnered with Motorola, Ericsson, Lucent and ECI Telecom for the

deployment of a reliable, technologically advanced network.

The company has a tie up with Japanese telecom major NTT DOCOMO to offer pan-India

mobile telephony services on the GSM and CDMA platforms under the Tata Docomo brand.

Tata Communications is a leading global provider of telecommunications solutions. The

company also provides broadband and content services to Indian consumers.

Present Leadership Of Reliance Communications

Our service is based on a very simple principle: provide the world's best customer experience.

This we achieve through a winning combination of global competencies, pioneering

technology and state-of-the-art customer-centric systems and processes.

Leadership is the key that differentiates us and fuels our growth. Our leaders are defined by

their:

Customer centricity.

Initiative and an attitude of ownership.


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Passion for excellence and an ability to energise.

Problem solving and an innovative "can do" mindset.

Entrepreneurship and stretch.

We invite you to join us at Reliance Communications and create an exciting future. Be a

leader in a global service company committed to changing and improving lives.

Send us your resume so we can match your profile to our requirements and embark on a

mutually fulfilling relationship.

We offer challenging assignments and career opportunities to engineers, MBAs, Telecom

network and IT specialists, profit centre heads as well as young professionals.

Reliance Communications is in the process of setting up best-in-class work facilities across

major cities in India. At Mumbai, the Dhirubhai Ambani Knowledge City (DAKC) hosts

more than 10000 professionals with a range of office complexes, food courts, avenues and

boulevards, fountains and video conferencing.

In addition to providing invigorating physical work settings, Reliance Communications

fosters a work culture marked by positive energy, team work and performance ethic.

We are committed to building a non-hierarchical and open work environment and a result-

driven meritocracy.

Present Leadership Of Tata Communications

Tata Communications today launches its next-generation Ethernet network in 24 nodes

around the world, marking the industrys first use of 802.1ah Provider Backbone Bridging

(PBB) on a global scale. Recognised as leader in the Ethernet market, Tata Communications

global network upgrade will provide industry-leading network services for both service


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providers and enterprises, enabling higher speed, enhanced security and improved

troubleshooting capabilities.

Tata Communications new Ethernet network core carries only Ethernet traffic, unlike

competing operators who are building converged MPLS and VPLS-based networks to carry a

mixture of private, public IP traffic and Ethernet services. As a result, Tata Communications

can provide a wide range of unique Ethernet services with native Ethernet Operations

Administration and Maintenance (OAM) management throughout. The next-generation

Ethernet core also allows Tata Communications to continue to provide its Ethernet customers

with the ability to select specific routes through its network (for diversity, latency or cost

reasons), a feature which is not supported by competitors VPLS networks.

Tata Communications new Ethernet network will allow customers to enjoy additional

services and benefits. In the coming months, Tata Communications will be launching an

enhanced multipoint service, burstability with usage-based billing and will further develop its

Dedicated Ethernet Service to scale from 1,000 10,000 Meg in 500 Meg increments. The

company is also now able to ensure higher network quality as a result of being able to

monitor each and every customer and class of service, independently.

Ethernet Nodal diversity, now available on Tata Communications Core layer, automatically

switches protected traffic to an alternate node located at a separate address in case of

catastrophic failure. Competing solutions using Ethernet over SDH can only offer protection

over the whole route rather than segment by segment. Customers will enjoy enhanced

network uptime in addition to being able to specify dual-local loops and a protected customer

hand-off


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Strengths Of Relaince Communications

Fully Owned Infrastrcture Reliance is the only telecom carrier that has a wholly-owned

global sub-sea cable network with a presence in over 27 countries, as well as 24-hour

proactive network monitoring and support.Reliability Reliances IPLC service is one of the

most reliable submarine cable networks. More important, it is very well supported by

Reliance's extensive domestic network.

One Stop Shop (OSS)

An End-to-End link with Single-End-Provisioning and Single-End-Billing:

Domestic link including the last mile in India and in the foreign country withour carrier partner.

Our fully-owned circuit between the international PoP in India and the designated PoPat the international end.

Dedicated teams for implementation and support in India and the US.

Affordable World-class Services Reliance has tie-ups with top international carriers that give

it a global reach and enable it to offer international quality SLA-level service standards,

giving the customer world-class services at highly competitive and affordable prices.

Choice of currency of Indian and foreign currencies

Scalability

Reliance offers highly scalable solutions for its IPL service, as there are no barriers for


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upgrading the capacity of circuits or provisioning multiple circuits. Connectivity capacity can

be scaled up at very short notice, enabling our customers to quickly react to their business

needs.

QoS with SLAs We offer a very high Quality of Service (QoS), backed by service level

commitments. Since Reliance uses an integrated network for its End-to-End services, there

are greatly fewer points of failure in the network, and our end-customers get a very high

quality service. Our cutting edge technology translates into exceptional network reliability

and service availability.

More Security We offer complete redundancy through diverse paths on the trans-Atlantic and

trans-Pacific routes.

Strengths Of Tata Communications

The Tata Communications Limited - SWOT Analysis company profile is the essential source

for top-level company data and information. Tata Communications Limited - SWOT

Analysis examines the companys key business structure and operations, history and

products, and provides summary analysis of its key revenue lines and strategy.

Tata Communications (or the company) is one of the leading providers of communications

solutions for enterprises, carriers and consumers. The company offers a range of services,

including transmission, internet protocol (IP), converged voice, mobility, managed network

connectivity, hosting and storage, managed security, managed collaboration and business

transformation for global enterprises and service providers. It also offers internet, retail


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broadband and content services for Indian consumers. The company's Tata Global Network

encompasses submarine cable networks connecting more than 200 countries.

Objective Of The Study of ratio analysis of reliance and tata mobile

handsets

Ever since inception, Reliance Communications has been offering an array of Mobile

Applications on its versatile Reliance Mobile World which has gained the popularity as a

one-stop-shop for entertainment, communication, gaming and m-commerce. Thanks to the

wide range of applications, it has endeared itself to users from all walks of life. Reliance

Mobile World has over 2500 useful applications and over 2,00,000 content titles which

include mobile TV, videos, cricket updates, music, ringtones, m-commerce, mobile mail,

messaging, city and TV guides, railway reservations, banking, bill payment and examination

results.

Reliance Communications also encourages the both the developer and the student

communities to come up with innovative mobile applications. Contests are held every year

under the aegis of Reliance Developer Program and the best and useful application designers

are suitably rewarded that includes revenue sharing.

The growth of Value Added Services market has attracted wireless operators, handset

manufacturers, and Content developers, music and film companies, cartoon artists, game

makers and musicians to develop entertaining content like ring tones, gaming, mobile

imagery, WAP, wall papers, logos, SMS based contests and streaming audio & video.

In the foreseeable future, the increasing competition and positioning of a mobile phone as a

complete personal entertainment device will further hot up and offer new challenges for

service providers to constantly keep adding to the host of services provided. Also, the content


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providing companies are looking at innovation as a strategy to achieve higher growth and

revenues.

Tata Teleservices Limited, along with Tata Teleservices (Maharashtra) Limited, serves over

85 million customers in more than 450,000 towns and villages across the country, with a

bouquet of telephony services encompassing the GSM, CDMA and 3G platforms, offering

Mobile Services, Wireless Desktop Phones, Public Booth Telephony and Wireline Data

Services across one unified and integrated brand-Tata DOCOMO. Tata Teleservices Limited

(TTL) spearheads the Tata Group's presence in the telecom sector. Incorporated in 1996, TTL

is the pioneer of the CDMA 1x technology platform in India and embarked on a growth path

after the acquisition of Hughes Telecom (India) Limited [renamed Tata Teleservices

(Maharashtra) Limited] by the Tata Group in 2002. It launched mobile operations in January

2005 and today enjoys a pan-India presence through existing operations in all of India's 22

telecom Circles. The company is also the market leader in the fixed wireless telephony

market and also enjoys leadership position in the enterprise space.In December 2008, TTL

announced a unique reverse equity swap strategic agreement between its telecom tower

subsidiary, Wireless TT Info-Services Limited, and Quippo Telecom Infrastructure Limited-

with the combined entity kicking off operations with 18,000 towers, thereby becoming the

largest independent entity in this space-with the highest tenancy ratios in the industry. Today,

the combined entity-which has been re-christened as VIOM Networks-has a portfolio of

nearly 40,000 towers.


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Chapter III

Data Presentation & Analysis

Of Reliance & Tata Communications

Balance Sheet Of Reliance Communications

Balance sheet

Mar ' 11 Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07

Sources of funds

Owner's fund

Equity share capital 1,032.01 1,032.01 1,032.01 1,032.01 1,022.31

Share application money - - - - -

Preference share capital - - - - -

Reserves & surplus 47,112.47 49,466.88 50,658.31 23,808.02 19,503.23

Loan funds

Secured loans 15,226.02 3,000.00 3,000.00 950.00 5,113.57

Unsecured loans 16,226.72 21,478.28 27,903.61 19,336.43 9,454.27

Total 79,597.22 74,977.17 82,593.93 45,126.46 35,093.38

Uses of funds

Fixed assets


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Gross block 40,904.17 39,838.17 37,941.15 21,576.32 20,625.82

Less : revaluation reserve - - - - -

Less : accumulated depreciation 12,063.27 9,225.69 6,533.38 4,688.69 2,527.37

Net block 28,840.90 30,612.48 31,407.77 16,887.63 18,098.45

Capital work-in-progress 9,907.66 1,683.52 3,643.86 7,117.56 2,185.60

Investments 32,102.13 31,898.60 31,364.75 13,844.14 5,434.43

Net current assets

Current assets, loans & advances 19,153.82 20,005.94 25,543.01 18,515.29 20,107.04

Less : current liabilities & provisions 10,407.29 9,223.37 9,365.46 11,238.16 10,732.14

Total net current assets 8,746.53 10,782.57 16,177.55 7,277.13 9,374.90

Miscellaneous expenses not written - - - - -

Total 79,597.22 74,977.17 82,593.93 45,126.46 35,093.38

Notes:

Book value of unquoted investments 32,101.85 31,898.31 31,364.63 13,844.14 5,434.43

Market value of quoted investments 0.28 0.29 0.12 - -

Contingent liabilities 1,958.61 3,274.83 6,555.82 4,392.73 3,781.30

Number of equity sharesoutstanding (Lacs) 20640.27 20640.27 20640.27 20640.27 20446.15


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Balance Sheet Of Tata Communications

Balance sheet


Sources of funds

Owner's fund

Equity share capital 285.00 285.00 285.00 285.00 285.00

Share application money - - - - -

Preference share capital - - - - -

Reserves & surplus 6,722.48 6,995.78 6,513.05 6,262.34 6,074.50

Loan funds

Secured loans 1,250.00 1,281.76 1,288.82 - -

Unsecured loans 964.98 1,357.15 1,039.05 777.80 197.61

Total 9,222.46 9,919.69 9,125.92 7,325.14 6,557.11

Uses of funds

Fixed assets

Gross block 8,190.01 6,820.94 5,890.00 4,352.65 4,582.98

Less : revaluation reserve - - - - -

Less : accumulated depreciation 3,384.82 2,316.14 1,792.06 1,363.75 1,428.81


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Net block 4,805.19 4,504.80 4,097.94 2,988.90 3,154.17

Capital work-in-progress 220.78 386.15 536.38 543.77 340.44

Investments 1,832.82 2,501.30 2,723.67 2,103.77 2,673.58

Net current assets

Current assets, loans & advances 4,574.15 4,786.78 4,925.66 4,140.15 2,447.42

Less : current liabilities & provisions 2,210.48 2,259.34 3,157.73 2,451.45 2,058.50

Total net current assets 2,363.67 2,527.44 1,767.93 1,688.70 388.92

Miscellaneous expenses not written - - - - -

Total 9,222.46 9,919.69 9,125.92 7,325.14 6,557.11

Notes:

Book value of unquoted investments 1,832.82 2,501.30 2,723.67 2,103.77 2,673.58

Market value of quoted investments - - - - -

Contingent liabilities 12,566.95 10,409.16 8,449.09 5,140.02 11,624.10

Number of equity shares outstanding (Lacs) 2850.00 2850.00 2850.00 2850.00 2850.00


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Key Financial Ratios Of Reliance Communications

Mar

'11

Mar '10 Mar '09 Mar '08 Mar '07

Investment Valuation Ratios

Face Value 5.00 5.00 5.00 5.00 5.00

Dividend Per Share 0.50 0.85 0.80 0.75 0.50

Operating Profit Per Share (Rs) 2.04 10.63 25.34 29.91 26.96

Net Operating Profit Per Share (Rs) 58.77 65.67 73.09 71.67 62.39

Free Reserves Per Share (Rs) -- 233.03 239.16 109.11 95.39

Bonus in Equity Capital -- -- -- -- --

Profitability Ratios

Operating Profit Margin(%) 12.85 16.18 34.66 41.73 43.21

Profit Before Interest And Tax Margin(%) 0.82 4.75 20.91 29.21 28.44

Gross Profit Margin(%) 0.87 5.03 21.84 29.26 40.43

Cash Profit Margin(%) 2.74 2.32 20.70 26.57 32.84

Adjusted Cash Margin(%) 5.77 2.32 20.70 26.57 32.35

Net Profit Margin(%) -6.00 3.33 30.47 17.45 18.63

Adjusted Net Profit Margin(%) -5.40 3.33 30.47 17.45 18.15

Return On Capital Employed(%) 1.03 1.97 4.80 9.65 10.96

Return On Net Worth(%) -1.57 0.94 9.29 10.41 11.74

Adjusted Return on Net Worth(%) -4.41 -2.33 2.57 8.43 11.43

Return on Assets Excluding Revaluations 233.26 244.66 250.43 120.35 100.39


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Return on Assets Including Revaluations 233.26 244.66 250.43 120.35 100.39

Return on Long Term Funds(%) -2.44 2.12 5.34 11.81 11.16

Liquidity And Solvency Ratios

Current Ratio 1.84 1.37 1.45 0.95 1.77

Quick Ratio 1.81 2.14 2.70 1.63 1.86

Debt Equity Ratio 0.65 0.48 0.60 0.82 0.71

Long Term Debt Equity Ratio 0.46 0.38 0.44 0.48 0.68

Debt Coverage Ratios

Interest Cover 1.16 1.36 4.12 5.01 8.43

Total Debt to Owners Fund 0.65 0.48 0.60 0.82 0.71

Financial Charges Coverage Ratio 5.09 2.39 5.12 7.13 12.45

Financial Charges Coverage Ratio Post Tax 12.78 2.59 6.84 6.09 10.30

Management Efficiency Ratios

Inventory Turnover Ratio -- -- -- -- 131.21

Debtors Turnover Ratio 7.18 8.42 11.72 15.61 15.90

Investments Turnover Ratio 39.63 41.20 -- -- --

Fixed Assets Turnover Ratio -- -- -- -- 1.41

Total Assets Turnover Ratio 0.15 0.16 -- 0.35 0.39

Asset Turnover Ratio 0.30 0.63 0.76 0.77 0.70

Average Raw Material Holding -- -- -- -- --

Average Finished Goods Held -- -- -- -- --

Number of Days In Working Capital 259.59 286.38 386.03 177.11 330.72


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Profit & Loss Account Ratios

Material Cost Composition 0.53 0.37 0.19 0.10 0.12

Imported Composition of Raw Materials

Consumed-- -- -- -- --

Selling Distribution Cost Composition -- 4.89 5.12 7.21 10.97

Expenses as Composition of Total Sales 7.68 6.26 9.23 8.88 13.23

Cash Flow Indicator Ratios

Dividend Payout Ratio Net Profit -- 42.71 4.02 7.00 4.96

Dividend Payout Ratio Cash Profit 5.73 10.27 2.86 4.08 2.81

Earning Retention Ratio -- 117.36 85.48 91.36 94.91

Cash Earning Retention Ratio 83.48 38.57 94.08 95.41 97.15

AdjustedCash Flow Times 43.20 73.51 9.47 5.15 3.48

Mar

'11

Mar '10 Mar '09 Mar '08 Mar '07

Earnings Per Share -3.67 2.32 23.27 12.53 11.78

Book Value 233.26 244.66 250.43 120.35 100.39


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Key Financial Ratios Of Tata Communications

Investment Valuation Ratios

Face Value 10.00 10.00 10.00 10.00 10.00

Dividend Per Share 2.00 -- 4.50 4.50 4.50

Operating Profit Per Share (Rs) 30.08 26.34 29.87 22.26 33.18

Net Operating Profit Per Share (Rs) 126.73 112.91 131.56 115.20 141.82

Free Reserves Per Share (Rs) 192.88 222.15 217.64 212.42 205.81

Bonus in Equity Capital 73.68 73.68 73.68 73.68 73.68

Profitability Ratios

Operating Profit Margin(%) 23.73 23.32 22.70 19.32 23.39

Profit Before Interest And Tax Margin(%) 5.32 5.26 10.94 9.71 13.31

Gross Profit Margin(%) 5.47 5.46 11.36 10.14 25.44

Cash Profit Margin(%) 20.25 15.38 15.42 17.19 20.66

Adjusted Cash Margin(%) 20.25 15.38 15.42 17.19 19.34

Net Profit Margin(%) 4.38 14.47 13.25 8.87 11.25

Adjusted Net Profit Margin(%) 4.38 14.47 13.25 8.87 9.94

Return On Capital Employed(%) 3.21 2.98 6.23 6.53 10.28


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Return On Net Worth(%) 2.31 6.63 7.58 4.65 7.37

Adjusted Return on Net Worth(%) 1.31 -0.84 2.57 4.40 6.50

Return on Assets Excluding Revaluations 245.88 255.47 238.53 229.73 223.14

Return on Assets Including Revaluations 245.88 255.47 238.53 229.73 223.14

Return on Long Term Funds(%) 3.28 3.02 6.67 6.94 10.60

Liquidity And Solvency Ratios

Current Ratio 1.92 2.01 1.31 1.44 1.08

Quick Ratio 2.01 2.08 1.52 1.64 1.12

Debt Equity Ratio 0.32 0.36 0.34 0.12 0.03

Long Term Debt Equity Ratio 0.29 0.35 0.26 0.05 --

Debt Coverage Ratios

Interest Cover 1.40 1.20 2.99 12.09 97.62

Total Debt to Owners Fund 0.32 0.36 0.34 0.12 0.03

Financial Charges Coverage Ratio 4.49 3.47 5.06 17.41 63.67

Financial Charges Coverage Ratio Post

Tax4.86 5.21 5.79 14.52 52.37

Management Efficiency Ratios


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Inventory Turnover Ratio -- -- -- 46,904.29 881.79

Debtors Turnover Ratio 5.16 3.26 3.12 3.25 4.78

Investments Turnover Ratio 676.36 2,574.43 -- 46,904.29 13,472.77

Fixed Assets Turnover Ratio -- -- -- 0.75 1.26

Total Assets Turnover Ratio 0.39 0.32 -- 0.45 0.63

Asset Turnover Ratio 0.45 0.47 0.64 0.75 0.90

Average Raw Material Holding -- -- -- -- --

Average Finished Goods Held -- -- -- -- --

Number of Days In Working Capital 235.60 282.74 169.75 185.16 34.64

Profit & Loss Account Ratios

Material Cost Composition 0.21 0.35 0.29 0.32 0.03

Imported Composition of Raw Materials

Consumed-- -- -- -- --

Selling Distribution Cost Composition 1.12 1.24 0.81 0.42 1.91

Expenses as Composition of Total Sales 24.51 25.83 24.88 31.53 43.52

Cash Flow Indicator Ratios

Dividend Payout Ratio Net Profit 40.75 -- 29.08 49.28 32.02


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Dividend Payout Ratio Cash Profit 8.05 -- 15.94 24.77 17.44

Earning Retention Ratio 28.08 100.00 14.36 47.99 63.74

Cash Earning Retention Ratio 91.19 100.00 75.02 74.56 81.37

AdjustedCash Flow Times 2.95 5.14 3.88 1.32 0.25

Mar

'11Mar '10 Mar '09 Mar '08 Mar '07

Earnings Per Share 5.70 16.95 18.10 10.68 16.44

Book Value 245.88 255.47 238.53 229.73 223.14


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Chapter 4

Summary & Conclusions

Reliance & Tata Communications Mobile

Handsets

Meaning of Research Method

Research is the systematic investigation into existing or new knowledge.It is used to establish

or confirm facts, reaffirm the results of previous work, solve new or existing problems,

support theorems, or develop new theories. A research project may also be an expansion on

past work in the field. In order to test the validity of instruments, procedures, or experiments,

research may replicate elements of prior projects, or the project as a whole. The primary

purposes ofbasic research (as opposed to applied research)

are documentation, discovery, interpretation, or the research and development of methods and

systems for the advancement of human knowledge. Approaches to research depend

on epistemologies, which vary considerably both within and between humanities and

sciences.

Objectives Of Research methods

There are several objectives for research methodology. It should be taken into consideration

that such objective for research methods as data collection is a basic and obligatory step for a

successful paper. Every research starts with the information that is relevant to the topic of the

writing.
http://en.wikipedia.org/wiki/Knowledgehttp://en.wikipedia.org/wiki/Theoremhttp://en.wikipedia.org/wiki/Theoryhttp://en.wikipedia.org/wiki/Basic_researchhttp://en.wikipedia.org/wiki/Applied_researchhttp://en.wikipedia.org/wiki/Documentationhttp://en.wikipedia.org/wiki/Discovery_(observation)http://en.wikipedia.org/wiki/Interpretationhttp://en.wikipedia.org/wiki/Research_and_developmenthttp://en.wikipedia.org/wiki/Knowledgehttp://en.wikipedia.org/wiki/Epistemologyhttp://en.wikipedia.org/wiki/Epistemologyhttp://en.wikipedia.org/wiki/Knowledgehttp://en.wikipedia.org/wiki/Research_and_developmenthttp://en.wikipedia.org/wiki/Interpretationhttp://en.wikipedia.org/wiki/Discovery_(observation)http://en.wikipedia.org/wiki/Documentationhttp://en.wikipedia.org/wiki/Applied_researchhttp://en.wikipedia.org/wiki/Basic_researchhttp://en.wikipedia.org/wiki/Theoryhttp://en.wikipedia.org/wiki/Theoremhttp://en.wikipedia.org/wiki/Knowledge


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Moreover, from the viewpoint of objectives any research paper may be classified as:

1) correlational, 2) explanatory, 3) exploratory, and 4) descriptive.Correlational research is conducted, in order to prove the existence of a relationship

between two or more issues. Explanatory research is necessary to find out why and

how the relationship between the aspects takes place. Exploratory research is

applied to explore the field, where little is known. As for descriptive research, it is

conducted to give a description and explanation of a certain situation or problem. All

the data is gathered in the dependence on the research objective. The research

question may be answered in two waysby means of structured (quantitative

research) or unstructured approach (qualitative research).

Meaning of Secondary Data

Secondary data, is data collected by someone other than the user. Common sources of

secondary data for social science include censuses, organizational records and data collected

through qualitative methodologies or qualitative research. Primary data, by contrast, are

collected by the investigator conducting the research.

Secondary data analysis saves time that would otherwise be spent collecting data and,

particularly in the case of quantitative data, provides larger and higher-quality databases that

would be unfeasible for any individual researcher to collect on their own. In addition,

analysts of social and economic change consider secondary data essential, since it is

impossible to conduct a new survey that can adequately capture past change and/or

developments.
http://en.wikipedia.org/wiki/Datahttp://en.wikipedia.org/wiki/Qualitative_researchhttp://en.wikipedia.org/wiki/Qualitative_researchhttp://en.wikipedia.org/wiki/Data


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Sources of Secondary Data

As is the case in primary research, secondary data can be obtained from two different

research strands:

Quantitative: Census, housing, social security as well as electoral statistics and otherrelated databases.

Qualitative: Semi-structured and structured interviews, focus groups transcripts, fieldnotes, observation records and other personal, research-related documents.

A clear benefit of using secondary data is that much of the background work needed has been

already been carried out, for example: literature reviews, case studies might have been carried

out, published texts and statistic could have been already used elsewhere, media promotion

and personal contacts have also been utilized.

This wealth of background work means that secondary data generally have a pre-established

degree ofvalidity and reliability which need not be re-examined by the researcher who is re-

using such data.

Furthermore, secondary data can also be helpful in the research design of subsequent primary

research and can provide a baseline with which the collected primary data results can be

compared to. Therefore, it is always wise to begin any research activity with a review of the

secondary data.
http://en.wikipedia.org/wiki/Semi-structured_interviewhttp://en.wikipedia.org/wiki/Structured_interviewhttp://en.wikipedia.org/wiki/Focus_groupshttp://en.wikipedia.org/wiki/Field_noteshttp://en.wikipedia.org/wiki/Field_noteshttp://en.wikipedia.org/wiki/Observationshttp://en.wikipedia.org/wiki/Validityhttp://en.wikipedia.org/wiki/Reliability_(statistics)http://en.wikipedia.org/wiki/Research_designhttp://en.wikipedia.org/wiki/Research_designhttp://en.wikipedia.org/wiki/Reliability_(statistics)http://en.wikipedia.org/wiki/Validityhttp://en.wikipedia.org/wiki/Observationshttp://en.wikipedia.org/wiki/Field_noteshttp://en.wikipedia.org/wiki/Field_noteshttp://en.wikipedia.org/wiki/Focus_groupshttp://en.wikipedia.org/wiki/Structured_interviewhttp://en.wikipedia.org/wiki/Semi-structured_interview


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Ratio Analysis

Meaning of Ratio:- A ratio is simple arithmetical expression of the relationship of one

number to another. It may be defined as the indicated quotient of two mathematical

expressions.

According to Accountants Handbook by Wixon, Kell and Bedford, a ratio is an expression

of the quantitative relationship between two numbers.

Ratio Analysis:- Ratio analysis is the process of determining and presenting the relationship

of items and group of items in the statements. According to Batty J. Management Accounting

Ratio can assist management in its basic functions of forecasting, planning coordination,

control and communication.

It is helpful to know about the liquidity, solvency, capital structure and profitability of an

organization. It is helpful tool to aid in applying judgement, otherwise complex situations.

ADVANTAGE OF RATIO ANALYSIS

1. Helpful in analysis of Financial Statements.

2. Helpful in comparative Study.

3. Helpful in locating the weak spots of the business.

4. Helpful in Forecasting.

5. Estimate about the trend of the business.

6. Fixation of ideal Standards.


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7. Effective Control.

8. Study of Financial Soundness.

LIMITATIONS OF RATIO ANALYSIS

1. Comparison not possible if different firms adopt different accounting policies.

2. Ratio analysis becomes less effective due to price level changes.

3. Ratio may be misleading in the absence of absolute data.

4. Limited use of a single data.

5. Lack of proper standards.

6. False accounting data gives false ratio.

7. Ratios alone are not adequate for proper conclusions.

8. Effect of personal ability and bias of the analyst.

CLASSIFICATION OF RATIO

Ratio may be classified into the four categories as follows:

A. Liquidity Ratio

a. Current Ratio

b. Quick Ratio or Acid Test Ratio

B. Leverage or Capital Structure Ratio


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a. Debt Equity Ratio

b. Debt to Total Fund Ratio

c. Proprietary Ratio

d. Fixed Assets to Proprietors Fund Ratio

e. Capital Gearing Ratio

f. Interest Coverage Ratio

C. Activity Ratio or Turnover Ratio

a. Stock Turnover Ratio

b. Debtors or Receivables Turnover Ratio

c. Average Collection Period

d. Creditors or Payables Turnover Ratio

e. Average Payment Period

f. Fixed Assets Turnover Ratio

g. Working Capital Turnover Ratio

D. Profitability Ratio or Income Ratio

(A) Profitability Ratio based on Sales :

a. Gross Profit Ratio

b. Net Profit Ratio


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c. Operating Ratio

d. Expenses Ratio

(B) Profitability Ratio Based on Investment :

I. Return on Capital Employed

II. Return on Shareholders Funds :

a. Return on Total Shareholders Funds

b. Return on Equity Shareholders Funds

c. Earning Per Share

d. Dividend Per Share

e. Dividend Payout Ratio

f. Earning and Dividend Yield

g. Price Earning Ratio


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References/Bibliography

http://www.tatacommunications.com/about/overview.asp http://en.wikipedia.org/wiki/Reliance_Communication http://www.rcom.co.in/Rcom/aboutus/overview/overview_internet.html http://www.rcom.co.in/Rcom/aboutus/ir/pdf/RCOM_Investor_ppt_March2011.pdf http://www.tata.com/products/index.aspx?sectid=U2YC1EMmQuk=#Telecommunica

tions

http://www.rcom.co.in/Rcom/aboutus/careers/careers_work_env.html http://www.researchandmarkets.com/reports/1084299/tata_communications_limited_s

wot_analysis.pdf

http://teleguru.in/2010/11/tata-communications-launches-next-generation-ethernet-network-provider-backbone-bridging-pbb-on-global-scale/

http://www.moneycontrol.com/financials/reliancecommunications/ratios/RC13 http://www.moneycontrol.com/financials/tatacommunications/ratios/TC17 . www.tatacommunications.com http://www.reliancemobile.com/webapp/Communications/website/Mobile/business/G

PRS.html
http://www.tatacommunications.com/about/overview.asphttp://www.tatacommunications.com/about/overview.asphttp://en.wikipedia.org/wiki/Reliance_Communicationhttp://en.wikipedia.org/wiki/Reliance_Communicationhttp://www.rcom.co.in/Rcom/aboutus/overview/overview_internet.htmlhttp://www.rcom.co.in/Rcom/aboutus/overview/overview_internet.htmlhttp://www.rcom.co.in/Rcom/aboutus/ir/pdf/RCOM_Investor_ppt_March2011.pdfhttp://www.rcom.co.in/Rcom/aboutus/ir/pdf/RCOM_Investor_ppt_March2011.pdfhttp://www.tata.com/products/index.aspx?sectid=U2YC1EMmQuk=#Telecommunicationshttp://www.tata.com/products/index.aspx?sectid=U2YC1EMmQuk=#Telecommunicationshttp://www.tata.com/products/index.aspx?sectid=U2YC1EMmQuk=#Telecommunicationshttp://www.tata.com/products/index.aspx?sectid=U2YC1EMmQuk=#Telecommunicationshttp://www.tata.com/products/index.aspx?sectid=U2YC1EMmQuk=#Telecommunicationshttp://www.rcom.co.in/Rcom/aboutus/careers/careers_work_env.htmlhttp://www.rcom.co.in/Rcom/aboutus/careers/careers_work_env.htmlhttp://www.researchandmarkets.com/reports/1084299/tata_communications_limited_swot_analysis.pdfhttp://www.researchandmarkets.com/reports/1084299/tata_communications_limited_swot_analysis.pdfhttp://www.researchandmarkets.com/reports/1084299/tata_communications_limited_swot_analysis.pdfhttp://www.researchandmarkets.com/reports/1084299/tata_communications_limited_swot_analysis.pdfhttp://www.researchandmarkets.com/reports/1084299/tata_communications_limited_swot_analysis.pdfhttp://teleguru.in/2010/11/tata-communications-launches-next-generation-ethernet-network-provider-backbone-bridging-pbb-on-global-scale/http://teleguru.in/2010/11/tata-communications-launches-next-generation-ethernet-network-provider-backbone-bridging-pbb-on-global-scale/http://teleguru.in/2010/11/tata-communications-launches-next-generation-ethernet-network-provider-backbone-bridging-pbb-on-global-scale/http://teleguru.in/2010/11/tata-communications-launches-next-generation-ethernet-network-provider-backbone-bridging-pbb-on-global-scale/http://teleguru.in/2010/11/tata-communications-launches-next-generation-ethernet-network-provider-backbone-bridging-pbb-on-global-scale/http://www.moneycontrol.com/financials/reliancecommunications/ratios/RC13http://www.moneycontrol.com/financials/reliancecommunications/ratios/RC13http://www.moneycontrol.com/financials/tatacommunications/ratios/TC17http://www.moneycontrol.com/financials/tatacommunications/ratios/TC17http://www.tatacommunications.com/http://www.tatacommunications.com/http://www.reliancemobile.com/webapp/Communications/website/Mobile/business/GPRS.htmlhttp://www.reliancemobile.com/webapp/Communications/website/Mobile/business/GPRS.htmlhttp://www.reliancemobile.com/webapp/Communications/website/Mobile/business/GPRS.htmlhttp://www.reliancemobile.com/webapp/Communications/website/Mobile/business/GPRS.htmlhttp://www.reliancemobile.com/webapp/Communications/website/Mobile/business/GPRS.htmlhttp://www.reliancemobile.com/webapp/Communications/website/Mobile/business/GPRS.htmlhttp://www.reliancemobile.com/webapp/Communications/website/Mobile/business/GPRS.htmlhttp://www.tatacommunications.com/http://www.moneycontrol.com/financials/tatacommunications/ratios/TC17http://www.moneycontrol.com/financials/reliancecommunications/ratios/RC13http://teleguru.in/2010/11/tata-communications-launches-next-generation-ethernet-network-provider-backbone-bridging-pbb-on-global-scale/http://teleguru.in/2010/11/tata-communications-launches-next-generation-ethernet-network-provider-backbone-bridging-pbb-on-global-scale/http://www.researchandmarkets.com/reports/1084299/tata_communications_limited_swot_analysis.pdfhttp://www.researchandmarkets.com/reports/1084299/tata_communications_limited_swot_analysis.pdfhttp://www.rcom.co.in/Rcom/aboutus/careers/careers_work_env.htmlhttp://www.tata.com/products/index.aspx?sectid=U2YC1EMmQuk=#Telecommunicationshttp://www.tata.com/products/index.aspx?sectid=U2YC1EMmQuk=#Telecommunicationshttp://www.rcom.co.in/Rcom/aboutus/ir/pdf/RCOM_Investor_ppt_March2011.pdfhttp://www.rcom.co.in/Rcom/aboutus/overview/overview_internet.htmlhttp://en.wikipedia.org/wiki/Reliance_Communicationhttp://www.tatacommunications.com/about/overview.asp

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