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vvvvA STUDY ON THE PERFORMANCE OF SBI MUTUAL

FUND WITH OTHER MUTUAL FUNDSA Study At

OPERATIONAL EFFICIENCY OF TATA

TELESERVICES

By

O.N.SANTOSHIII Semester, MBA

Reg.No.07MB3598

Guide

Mrs. VASANTHA, MBA, M.COM, M.philProfessor

MSB, Chennai.

Magnus School of Business,140, Marshalls Road,

Egmore, Chennai-600008.

A project report submitted to the University of Mysore in partial

fulfillment of the requirement of MBA Degree Examination of

2007-2009.


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UNIVERSITY OF MYSOREMAGNUS SCHOOL OF BUSINESS

EGMORECHENNAI-600001.

CERTIFICATE

This is to certify that Mr.O.N. SANTOSH Student of III Semester MBA course hasprepared this project report entitled A STUDY ON OPERATIONAL EFFICIENCY

OF TATA TELESERVIES A Study at.TATA TELESERVICES, CHENNAI., in

partial fulfillment of the requirement of MBA degree examination of 2007-2009.

ACADEMIC HEAD

(Prof.

S.V.Ganesan)


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UNIVERSITY OF MYSORE

MAGNUS SCHOOL OF BUSINESSEGMORE

CHENNAI-600001.

GUIDANCE CERTIFICATE

The project report entitledA STUDY ON THE OPERATIONAL EFFICIENCY OF

TATA TELESERVICES., CHENNAI, is written by Mr. O.N. SANTOSH under myguidance. The report is submitted to the University of Mysore in partial fulfillment of the

requirements of MBA degree examination of 2007-2009.

PROJECT GUIDE

(Prof. S.VASANTHA)


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DECLARATION

I hereby declare that this project report titled A STUDY ON OPERATIONAL

EFFICIENCY OF TATA TELESERVICES a case study prepared by me under

guidance ofMrs. VASANTHA, MBA, M.COM, Professor MSB, in partial fulfillment

of the requirement of Master in Business Administration Degree to be awarded by the

University of Mysore for academic year 2007-2009.

I further declare that the project report has not been submitted earlier to any

Institute/University for any degree or diploma.

Date:

Place:

(O.N. SANTOSH)

[Reg. No. 07MB3598]


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ACKNOWLEDGEMENT

I wish to express my sincere gratitude to few people without whose support,

guidance & encouragement, this project could not have been completed.

I would like to express my gratitude to Prof. Mr. S.V.GANESAN, BSC,

B.TECH., PGDBM ( IIM-B) Academic Head of Magnus School of Business,

Chennai, for providing me an opportunity to undertake this project work, thus making

way for enhancing my knowledge about the project.

I am extremely grateful to my project guide Mrs. VASANTHA, MBA,Professor,

MSB, for her kind and valuable guidance in completing this project.

I sincerely ThankMr. V.V. PRAKASH, of TATA TELESERVICES, Chennai,

who spent their valuable time in providing information and suggestions to me when

required.

Date:

Place:

(O.N. SANTOSH)

[Reg. No. 07MB3598]


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INDUSTRY PROFILE

Introduction to telecommunication

Telecommunication is the assisted transmission of signals over a distance for the

purpose of communication. In early times, this may have involved the use of smoke

signals, drums, semaphore, flags or heligraph. In modern times, telecommunication

typically involves the use of electronic transmitters such as the telephone, television,

radio or computer. Early inventors are the field of telecommunication includes Alxeander

Graham Bell, Guillermo Marconi and John Logie Baird. Telecommunication is an

important part of the world economy and the telecommunication industrys revenue has

been place at just 3 percent of the gross world product.

Telecommunication is an important part of modern society. In 2006, estimates placed

the telecommunication industrys revenue at $1.2 trillion or just under 3 % of the gross

world product (Official exchange rate).

Telecommunication Industry in India

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

industrial growth. From the status of state monopoly with every limited growth, it has

grown in to the level of an industry. Telephone, whether fixed landline or mobile, is an

essential necessity for the people of India. This changing phase was possible with the

economic development that followed the process of structuring the economy in the

capitalistic pattern. Removal of restriction on foreign capital investment and industrial

de-licensing resulted in fast growth of this sector. At present the countrys telecom

industry has achieving a growth rate of 14 percent. Till 2000, through cellular phone

companies were present, fixed landline where popular in most part of country. Today the

industry offer services such as fixed landlines, WLL, GSM mobiles, CDMA and IP


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services to customers. Increasing competition among players allowed the prices

drastically down by making the mobile facility accessible to the urban luxury. Major

players in the sector are BANL, MTNL, Bharati teleservices, Hutchisson Essar, BPL,

Tata, Idea, etc with the growth of telecom services, telecom equipment and accessories

manufacturing has also growth in a big way.

The Indian telecommunication network with 110.01 million connections is the fifth

largest in the world and the second largest among the emerging economies of Asia. The

wireless technologies currently in use are global system for mobile communications

(GSM) and Code division multiple access (CDMA). There are primarily 9 GSM and 5

CDMA operators providing mobile services in 19 telecom circles and 4 metro cities,

covering 2000 towns across the country.


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EVOLUTION OF THE INDUSTRY IMPORTANT MILESTONES

History of India Telecommunication

1851 First operational land lines were laid by the government near Calcutta

1881 Telephone service introduces in India

1882 Merger with the postal system

1923 Formation of Indian radio telegraphy company (IRT)

1947 Merger of ETC and IRT into Indian radio and cable communication company

1985 Depart of telecommunication established, an exclusive provider of domestic

And long-distance

1986 Videsh Sanchar Nigam limited (VSNL) for international telecommunications

And Mahanager telephone Nigam Limited (MTNL) for service in

1997 Telecom Regulators Authority of India created

1998 Cellular Services are launched in India. New National Telecom policy is

adopted.

1999 Cellular services are launched in India. New National Telecom policy is

adopted.

2000 DOT becomes a corporation, BSNL


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OVERVIEW OF TELECOM INDUSTRY

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

many phases of growth and diversification. Starting from telegraphic and telephonic

systems in the 19th century, the field of telephonic communication has now expanded to

make use of advanced technologies like GSM, CDMA, and WLL to the great 3G

Technology in mobile phones. Day by day, both the Public Players and the Private

Players are putting in their resources and efforts to improve the telecommunication

technology so as to give the maximum to their customers.

The Indian telecom sector can be broadly classified into Fixed Line Telephony and

mobile telephony. The major players of the telecom sector are experiencing a fierce

competition in both the segments. The major players like BSNL, MTNL, VSNL in the

fixed line and Airtel, Hutch, Idea, Tata, Reliance in the mobile segment are coming up

with new tariffs and discount schemes to gain the competitive advantage. The Public

Players and the Private Players share the fixed line and the mobile segments. Currently

the Public Players have more than 60% of the market share.


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SCOPE OF TELECOM INDUSTRY

The telecom industry is growing at a great pace and the growth rate is expected to double

with every passing year. There are many new developments in the telecomm sector,

including the ingress of 3G technology that the Indian market is witnessing at present.

PUBLIC AND PRIVATE PLAYERS

MTNL, BSNL, VSNL are the major Public Players, whereas Airtel, Idea, Hutch, Tata,

Reliance, BPL are the leading Private Players in the country. Some of them are entering

foreign markets as well. The Bharati Telecom will be launching its services for the NRIs

in the US with the help of Airtel CALLHOME service.

The market shares of the leading public and Private Players


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3G TECHNOLOGY IN INDIA

From the time of telegraphs Indian telecom sector has witnessed an immense growth and

has diversified into various segments like, Fixed Line Telephony, mobile telephony,

GSM, CDMA, WLL etc. The telecom industry is growing at a fast pace introducing

newer technologies. Even the network operators and handset providers are also

coming up with newer value added services and advanced technology cell phones

with multimedia.

Now it's time to welcome the much-awaited 3G Technology. Bharat Sanchar

Nigam Limited is all set to launch the technology by December 2007. Not only the

network providers but also the handset providers in India are waiting eagerly for the

launch of 3G to earn very high revenues from the value added services provided by

the technology.

The technology is initially being launched on CDMA platform. The technology is being

tested over various platforms and cellular networks.

EXISTENS OF 3G TECHONOLOGY

3G Technology was implemented in Japan for the first time in the world. Today the

technology is serving 25 countries over more than 60 networks having its existence

in Asia, Europe and USA. Video conferencing has been a major factor in the success

of the technology.


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CDMA2000 3G SUBSCRIBERS BASE WORLDWIDE

3G SUBSCRIBERS BASE (IN MILLIONS)


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MAJOR PLAYERS:

There are three types of major players in Telecom Services:

Stated owned companies (BSNK and MTNL)

Private Indian owned companies (Reliance Infocomm, Tata Teleservices)

Foreign invested companies (Hutchison-Essar, Bhrathi Tele-Ventures, Escotel, Idea

cellular, BPL Mobiles, Spice Communications)

TATA TELESERVICE:

Established in 1996, Tata Teleservices, one of the 96 companies of Tata Group, has its

network in 20 circles. It is the first company to launch CDMA mobile services in

India. With investment of Rs.36, 000 crores during financial year 2005-06, Tata

Teleservices has reached the mark of 1.07 crore subscribers.

The company covers a wide range of services like Mobile services, Wireless Desktop

Phones, Public Booth Telephony and Wire line services. It also offers some valueadded services like 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.

Tata Teleservices has partnered with Motorola and Ericsson for providing reliable

services to its customer base.

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

over 15.9 million customers (with 75% increase in FY 2007 over March 06-sub base)

covering over 3200 towns. Income from Telecommunication reached to 1,095.13,

with 7.9 lakhs mobile subscribers and 8.3 lakhs fixed wireless subscriber.


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Formerly named as Hughes Tele.com (India) Ltd., Tata Teleservices Maharashtra

Limited (TTML) with 70.83% equity shareholding by TATA Group, is the premier

telecommunication service provider licensed to provide services in Maharashtra

(including Mumbai) and Goa. In February 2002, the Government of India released

25% of VSNL's equity to Tata Teleservices.

MARKET SHARE OF CDMA WIRELESS AS ON 31.12.06

OPERATOS MARKET SHARE

RELIANCE 59.6%

TTSL 32.7%

BSNL 6.7%MTNL 0.4%

HFCL 0.3%

SATYAM TELELINK 0.2%


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COMPANY PROFILE

Tata Teleservices is part of the INR Rs. 2, 51,543 Crore Tata Group that has over 80

companies, over 3, 30,000 employees and more than 3.2 million shareholders. With a

committed investment of INR 36,000 Crore (US$ 7.5 billion) in Telecom (FY 2006), the

Group has a formidable presence across the telecom value chain.

Tata Teleservices spearheads the Groups presence in the telecom sector. Incorporated

in 1996, Tata Teleservices was the first to launch CDMA mobile services in India with

the Andhra Pradesh circle.

Beginning with its acquisition of Hughes Telecom (India) Limited in December 2002

[now renamed Tata Teleservices (Maharashtra) Limited], which provides services in the

Mumbai and Rest of Maharashtra telecom circles, the company has swung into expansion

mode and currently has a pan-India state-of-the-art network.

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

has established a 3G-ready robust and reliable telecom infrastructure in partnership with

Motorola, Ericsson and Lucent. The company has also received the license from the

Department of Telecommunications to launch GSM services as well. With this launch set

for early 2009, TTSL is on the threshold of emerging as a true-play dual technology

telecom operator.

In November 2008, Tata Teleservices entered into an agreement with Japanese

telecom major NTT DOCOMO, as part of which the Japanese company acquired a 26%

stake in TTSL for USD 2.7 billion. The transaction marks a key step in the strategic

evolution of Tata Teleservices, as it moves towards a pan-India dual network presence.

On a broader level, the transaction is also expected to mark the beginning of a

relationship of broader co-operation between Tata companies and the Nippon Telegraph

and Telephone Corporation (NTT).


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(III) Brief History of VSNL

The first Submarine Telegraph Cable from U.K. Landed in Bombay in 1870, heralding

the year of external telecommunications in India. The Eastern Telegraph Co. (ETC) of

1872 And the India Radio Telegraph Co. (IRT) of 1927 merged to from the India Radio

and Cable communication Co. (IRCC) in 1932.

TTML ORGANIZATION:

Tata Teleservices Maharashtra Limited (TTML) spearheads the Tata Groups presence

in the Indian Telecom Sector by begin the primer telecommunication services provider,

licensed to provide services in Maharastra and Goa.

Formerly Hughes Telecom (India) Ltd., the company was renamed to Tata

Teleservices Maharashtra Ltd subsequent to the acquisition of 70.83% equity

shareholdings by TATA group in December 2002. The companys shares are traded n

the Bombay stock Exchange (BSE) and National stock exchange (VSE). TTMLs

bouquet of telephony services included mobile, fixed wireless phones (FWP), public

telephone booth & wire line services. Its suite of broadband Data network & application

services include Leased Lines, DSL, Wi-Fi, Ethernet, Managed Gateway Services & Web

conferencing services. The company has deployed the latest 3G 1X CDMA technology

in the state of offer wireless communication services like mobile & fixed Wireless

phones to its customers.


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GROWTH OF TTSL:

Tata Teleservices is part if the INR Rs.96723 Crores (US$ 22 billion) Tata group, that

has over 96 companies, over 250,000 employees and more than 2.8 million share holders.

With a committed investment of INR 36,000 Crores in Telecom (FY 2006), the Group

has formidable presence across the telecom value chain.

Tata teleservices spearheads the Groups presence in the telecom sector. Incorporated

in 1996. Tata teleservices was the first to launch CDMA mobile services in India. Tata

teleservices bouquet of telephony services includes mobile services, wireless desktop

phones, public booth telephony and wire less services. Other services include value

added services like voice portal, roaming, post-paid internet services, 3-way

conferencing, group calling, Wi-Fi internet, USB modem. Some of the other products

launched by the company include prepaid wireless desktop phones, public phone booth ,

new mobile handset and new voice & data service such as BREW games, ring tones

cricket etc.

Tata Indicom redefined the existing prepaid mobile market in India, by their offering

Tata indicom Non Stop Mobile which allows customers to receive free incoming calls.

Tata teleservices today has Indias largest branded telecom retail chain and is the first

service providers in the country to offer as online channel www.i-choose.in to offer

postpaid mobile connections in the country.

Tata teleservices has a strong workforce of 6000. In addition, TTSL has created more

than 20,000 jobs, which will include 10,000 indirect jobs through outsourcing of its

manpower needs. Today, Tata Teleservices Limited along with Tata Teleservices

(Maharsahtra) Limited serve over 20 million customers in over 3400 towns. With as

ambitious rollout both within existing circles and across new circles, Tata Teleservices

offered world-class technology and user-friendly services in 23 circles.
http://www.i-choose.in/http://www.i-choose.in/http://www.i-choose.in/


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VISION:

Trusted Services to 100 million Happy Customer by 2011.

MISSION:

To empower every Indian to connect with the world affordably.

VALUES:

Fairness through meritocracy.

Trust based on accountability.

Tenacity for result.

Pioneering sprit.

Excellence in Execution.

Leadership with Humility.

MOBILE SERVICES:

True paid - Entry into the prepaid mobile segment.

In October 2004, the company enters into the prepaid market segment by launching Tata

Indicom true paid offer talk time (with no administrative and hidden cost).

FIXED WIRELESS SERVICES:

During 2004 the company repositioned its fixed services with enhances features like

g\high speed Internet without modem, SMS and voice mail under the sub-brand name

Walky. Through Walky company share increased to 70%.


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FUNCTIONAL AREAS OF TTSL:

1. Business Improvement Group (BIG)

a. Business Excellence

b. Strategy Planning

c. Risk Management

d. Circle Operating Officers.

2. Corporate Regulatory.

3. Finance, Legal and Support services

4. Human Resource and Support Service

a. Policy Formation,

b. Business Ethics,

c. Learning and development of employees,

d. Reference Scheme,

e. Medical Insurance,

f. Job posting, etc.

5. Information Technology (IT)

a. To provide inputs to enable (IT)

b. To have state of the art architecture.

c. To develop and maintain strategic alliance,

d. To rollout best practices by using benchmark tools.

6. MARCOM (Marketing)

7. Network

a. Process implementation

b. Fault management

c. Spare management

d. Network performance

e. MIS (Management information system)

f. Best practice implementation

g. Operation support

h. Backbone of network handover & network protection

i. Customer complaint analysis


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j. Network meet

k. New feature implementation

l. VSNL operation support, etc.

8. Supply chain Management (SCM)

a. Sourcing,

b. Vendor development

c. Purchasing logistics, ware housing,

d. Inventory management.


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INDUSTRIAL PIONEERS:

1907 - Asias first steel plant at Jamshedpur, courtesy the vision ofJamsetji and his

son Dorab and Ratan.

1910 - Hydro Power introduced in India.

1932 - Indias national air carried launched

1998 Indias first indigenous car.

INDUSTRIAL PRACTICES FIRSTS:

1912 8 hr working day.

1915 Free medical aid.

1917 Schooling for workers children.

1920 Leave with pay, workers PF scheme.

ABOUT TATA GROUP:

Indias largest business group,

Diverse businesses in 7 sectors, like Information technology, Engineering,

Materials, Services, Energy, Chemicals and Consumer products.

Revenues equivalent to 3.2% of Indians GDP international 38 % Group Revenue

Operations in over 80 countries

Products and services exported to 85 countries

Largest employer in private sector over 298,500 employees

Group revenue FY 2007: Rs 129,994 Cr / $28.8 bn

5 LARGEST COMPANIES:

TCS Rs. 92,898 cr / $23.5 bn

TATA MOTORS Rs. 26,609 cr / $6.7 bn

TATA STEEL Rs. 49, 872cr / $12.6 bn

TAT POWER Rs. 23,729cr / $6.0 bn

VSNL Rs. 14,717 cr / $3.7 bn.


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GROUP CORPORATE CENTRE

R N Tata, Chairman, Tata sons Group

chairman

N A Soonawala, Vice Chairman, Tata sons

J J Irani, Director, Tata Sons, Tata quality

management

R Gopalkrishnan, Executive Director,

Tata Sons, Brand Management, Human

Resources

Ishaat Hussain, Finance Director, Tata

Sons Finance, Legal

R K Krishna Kumar, Director, Tata Sons

Arun Gandhi, Executive Director, Tata

Sons, Tax Compliance

Alan Rosling, Executive Director, Tata

sons Internationalization


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PRODUCT PROFILE

Before going in depth into the product profile of Access Business Unit of TTSL,

we shall understand the concept of 3G technology, pre paid and post paid.

3G TECHNOLOGY:

If the future going in depth of wireless technology is 3G then rest assured. The is

also CDMA.

Through the 1st part of 2008 India witness to launches of 3G service is already hot

and running.

TTSL focus will be CDMA EV-DO based capable of offering 500 Kbps and

burst rate is up to 2.2 mbps. Among technology that will be introduced will be video

messaging, push 2 talk (PTT), mobile Broadband, pocket PC Phones with advanced

features and tremendous VAS capabilities.

CDMA is based for 3 IMT-2000 technology that widely supports worldwide

CDMA 200, WCDMA and TD-SCDMA. But CDMA 2000 attained the fastest

momentum.

CDMA 200, the 1st IMT 2000 technology to be commercially deployed, now

hoasts of over 100 networks in 32 countries on 5 continents and show no sign of

slowing down.

CDMA 200 1st launched in south korea and in two and a half year it operates

across Asia, Australia, Europe, the ideal east, north and south America.

As of December 2006 there were nearly 50 million subscribers growth at a rate of

4 million per month, 38 % of all CDMA subscribers are 3G users today and in some

market such as south korea it is 50% of CDMA subscribers.


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PREPAID:

The mobile subscribers buy a certain bucket of minutes in advance, and buy more

when they run out. A prepaid customer is effectively anonymous to the operator. He

purchases a Scratch-card, which allow him to load his telephone with prepaid

minutes, but the relationship ends there. No bill is presented for prepaid usage and

the subscribers may or may not choose to buy further cards.

POST PAID:

Postpaid customer receives a bill at the end of the period, often itemized with a

breakdown of the different types of services or destination for call made during that

period. Successive bills and rewards based on his or her usage pattern, which future

begin to offer incentives and contributes to lower customer churn and higher phone

usage.

The key to successful in the operators ability to create a two-way information

flow between himself and his prepaid customers just as he has with postpaid ones.

Consequently, the billing solution implemented within the operators operation center

must be able to create combined group of prepaid and postpaid customers.

ACCESS BUSINESS UNIT: (ABU)

TTSL created the pay Telephone Business Unit as a separate business unit

in 2000 to systemize and structure the unorganized PTB industry.

Pre-paid business model

Faster and wider distribution of payphone and rural telephone in India.

PTB business became Indias first branded and standardized payphone

offering.

Successfully entered the rural markets in FY 2005-06 with and ramped up

more than 0.7 million rural constructions.

Rated highest on CSAT among all telecom players by rural subscribers.


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OBJECTIVES:

To study the overview of operational expenses of TATA teleservices limited.

To evaluate the operational efficient of Tamilnadu circle with other circles in

southern part of India.

To evaluate the performance of TATA teleservices among other competitors.

To evaluate the expenses management of Tamilnadu circle with other circles in

southern part of India:


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REVIEW OF LITRATURE:

According to the study conducted by TRAI (2006) points to the fact that Chinese

operators have stronger business fundamentals in place. In specific the study points

out those Chinese companies are able to generate a higher rate of earnings before

interest, depreciation, amortization and tax margin. They earn high rate of return on

the capital employed at 21 per cent compared to a margin of 7per cent earned by

Indian companies. The study notes that total telecom revenue of Chinese telecom

companies, both cellular and fixed line operators stands at a whopping $72.70 billion

during the calendar year 2005 while in the same period Indian Telecom earned $19.50

billion. India operators pay a higher rate of service tax at nearly 12 per cent while the

Chinese companies pay only 3 per cent as service tax. When it comes to usage in

minutes India scored above china with subscribers talking on an average 400 minutes

a month compared to 300 minutes by Chinese users.

The financial performance of 32 relatively matched pairs of diversifying and non-

diversifying companies in five Indian industries is compared by George Paul (1985),

the finding indicate that diversification indicate that diversification is selectively

useful.

Anthony H. Catanach Jr (2000) in adopting SFAS No. 95, statement of cash flows

and financial Accounting Standard Board (FASB) specifically recognized the

important of operating cash flow information in assessing the long term survival

prospects of financial institutions. However, operating cash flow (OCF) are not a

required disclosure in the regulatory financial reports of these institutions.

Furthermore, none of the problem financial institution studies conducted to the date

has examined the distress prediction abilities of OCF. This paper argues that OCF are

useful measure of financial institution distress because they reflect the realized

operating risk of these firms. The study uses a latest variables modeling approach to

investigate the relationship between OCF and institution risk. A profit model cross-

selectionally examines the potential usefulness of OCF in the supervision and

monitoring of financial institution. The study uses savings and loan industry data


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from the 1980s to test the research hypotheses. This sample includes a large number

of distressed institutions and covers several periods of structural change within which

to evaluate the robustness of OCFs predictitive ability. The findings show that OCF:

(1) consistently reflect realized credit and interest-rate risk in S&l, (2) contribute

incremental to traditional thrift distress prediction models in five of eight years

examined, and (3) reduce type of I errors in out-of-sample test in several periods.

Overall, however, OCF do not appear to improve total classification accuracy in most

models examined.

The research (2004) applies Data envelopment Analysis (DEA) methodology to

evaluate the efficiency of units within a large scale network of petroleum distribution

facilities in U.S.A Multiple input and output are incorporated into a board state of

DEA models, yielding a comprehensive approach to evaluating supply chain efficient.

This study empirically separates three recognized importance and yet different causes

of performance shortfall which have been generally difficult for managers to identify.

They are I) managerial effectiveness ii) scale of operations and potential for a given

market area and III) understanding the resources heterogeneity via programmatic

difference in efficiency.

Deborah Magliozzi (2002) analyzed the Telecom Industry and found that telecom

industry has radically changed over last year from a monopoly to a competitive

market. A multitude of new technologies, liberalization and uncertainties about

regulation are the key effects in this period of transition. This study analyses the

economic and financial aspects of incumbent national operations in Europe through

the construction of appropriate strategic maps for the year 1998.

Brek (2005) studied the drive of leverage in Slovene blue-chip firms by focusing

on the trade-off and pecking order theory. He tested the dependence of leverage on

tangibility, profitability, and value of non-debt tax shields in the periods 2000-01 and

2002-03. In the first period only profitability exhibits statistical significance at a 0.05

level, while tangibility of assets and future growth opportunities are significance at a


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0.1 level. Moreover, only tangibility of assets is statistically significant in the second

period. He found negative correlation between future growth opportunities and

leverage is positive.

FINANCIAL TERMS USED IN THE PROJECT:

REVENUE:

In business revenue or revenues (turn over in Europe) is income that a company

receives from its normal business activities, usually from the sale of goods ad services

to customers.

DIRECT COST:

A cost that can be directly traced to producing specific goods or services.

BAD DEBTS:

In accounting and finance, a bad debt is the portion of receivables that can no

longer be collected, typically from accounts receivables or loans. A bad debt in

accounting is considered an expense.

ACCESS CHARGES:

Access charges refer to payment made by long-distance carriers to local service

providers for originating and terminating calls on local telephone networks. The

regulation of access charge rates is therefore a form of price control.

MARKETING EXPENSES:

The expenses on marketing activities such as advertisement campaign, media,

public relation activities, etc are the marketing expenses.


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WIRELESS PLANNING COMMITTEE (WPC):

The part of the revenue paid for wireless planning committee for using the space

station, satellites, etc. for connecting the dels.

CHURN RATE:

We define our churn as the total number of subscribers who cancel (whether

involuntarily due to non-payment or voluntarily as such the subscribers request) from

our service during the period, expressed as a percentage of the average number of

subscribers during the period.

REVENUE PER USER (RPU):

A ratio used to express the profitability of a company on a per-user basis. RPU are

calculated by taking overall revenue and dividing by total number users:

RPU = Total revenue

Total customers

This ratio is mainly used by service providers, such telephone providers. This

measure helps companies to uncover deficiencies and plan strategies for growth. RPU

also help the company determine which product or service lines produce the most

revenue per customer and, therefore, which customer relationship are the most

important.

OPERATING CASH FLOW (OCF):

OCF is the amount used to represent the money moving through a company as a

result of its operations, as distinct from its purely financial transactions. The

operating cash flow ratio can gauge a companys liquidity in the short term. Using

cash flow as opposed to income in some times better indication of liquidity simply

because, we know cash is how bills are normally paid off.

OPERATING COST:


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This is the expenses of maintaining property (e.g. paying property tax and utilities

and insurance); it does not include depreciation or the cost of financing or income

taxes. Also known as OPERATING EXPENSES.

OPERATING EXPENDITURE:

This is the amount used during a particular period directly in support of day-to-day

operations such as wages, maintenance, office suppliers, etc.

OPERATING MARGIN:

Operating margin gives analysts an idea of how much a company makes (before

interest and taxes) on each dollar of sales. When looking at operating margin to

determine the quality of a company, it is best to look at the change in operating

margin over time and to compare the company's yearly or quarterly figures to those of

its competitors. If a company's margin is increasing, it is earning more per dollar of

sales. The higher the margin, the better

Operating margin is the ratio of operating income to sales revenue.

OPERATING PROFIT:

The profit earned from a firm's normal core business operations. This value does not

include any profit earned from the firm's investments (such as earnings from firms in

which the company has partial interest) and the effects of interest and taxes.

Also known as "earnings before interest and tax" (EBIT).

Calculated as:

.

OPERATING PROFIT TO SALES:


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Operating profit to sales is a useful ratio when evaluating value of a firm. It discounts

the effect of varying tax rates and benefits to give a more indication of the return

associated with the firm.

OPERATING RATIO:

Operating ratio measure a firms operating efficiency, calculated: company

operating expenses divided by its operating revenues.

The smaller the ratio, the greater the organization's ability to generate profit if

revenues decrease. When using this ratio, however, investors should be aware that

it doesn't take debt repayment or expansion into account.

YTD:

YTD is year to date; meaning the period beginning of the calendar year, January

1st of the current year, or the fiscal year up until todays date.

OPERATING EXPENSES RATIO:

Operating expenses ratio is a useful ratio for the measurement of management

efficiency, it is calculated by operating expenses divided by net sales.

The operating expense ratio also known as the OER is the ratio between the total

operating expenses and the effective gross income for an income producing property.

Operating expenses are costs associated with the operation and maintenance of

income producing properties. They include such items as property taxes, property

management fees, insurance, wages, utilities, repairs and maintenance, supplies,

advertising, attorney fees, accounting fees, trash removal, pest control, etc. The

following are not operating expenses; loan payments, personal property and capital

improvements.

RETURN OF NETWORTH:


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Return on networth measure the return relative to investment in the company that

is how well the company leverages the investment in it. It is used to evaluate the

overall return.

DEBT/EQUITY RATIO:

A measure of a companys financial leverage calculated by dividing its total

liability by stake holders equity. It indicates what proportion of equity and debt the

company is using to finance its assets.

CURRENT ASSET TURNOVER RATIO:

This indicates the efficiency of utilization of current assets. The more efficient the

management the greater is the turnover ratio.

ACID TEST RATIO:

A straighten test that indicates whether a firm has enough short-term assets to

cover its immediate liabilities without selling inventory. The acid test ratio is far

more strenuous than the working capital ratio, primarily because the working capital

ratio allows for the inclusion of inventory of assets.

RETURN ON ASSETS:

An indicator of how profitable a company is relatively to its total assets. ROA

gives an idea as to how efficient management is at using its assets to generate

earnings. Calculated by dividing a companys annual earnings by its total assets,

ROA is displayed as a percentage. Sometimes this is referred by its total assets; ROA

is displayed as a percentage. Sometimes this is referred to as return on investment.

ROA tells you what earnings were generated from invested capital (assets). ROA

for public companies can vary substantially and will be highly dependent on the

industry. This is why when using ROA as a comparative measure, it is best to

compare it against a company's previous ROA numbers or the ROA of a similar

company.


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LEVERAGE RATIO:

Any ratio used to calculate the financial leverage of a company to get an idea of the

company's methods of financing or to measure its ability to meet financial obligations.

There are several different ratios, but the main factors looked at include debt, equity,

assets and interest expenses.

A ratio used to measure a company's mix of operating costs, giving an idea of how

changes in output will affect operating income. Fixed and variable costs are the two types

of operating costs; depending on the company and the industry, the mix will differ.


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RESEARCH METHODOLOGY

MEANING F RESEARCH:

The term Research refer to systematic method consisting of enunciating the

problem, formulating a hypothesis, collecting the facts or data, analyzing the fact and

reaching certain conclusion either in the form of solution towards the concerned

problem or in certain generalization for some theoretical formulation.

RESEARCH METHODOLOGY:

A research methodology defines what the activity of research is, how to proceed,

how to measure process, and what, constitutes success.

METHODOLOGY IS DEFINED AS:

1. The analysis of the principal of methods, rules and postulates employed by a

discipline.

2. The systematic study of methods that are, can be, or have been applied with in

a discipline.

3. A particular procedure or set of procedure.

TYPES OF RESEARCH:

Analytical research is selected for this project, since the researchers aim is to

analysis the operational efficiency of TATA teleservices limited.

SOURCE DATA:

Both primary and secondary data are used for this research. Primary data is collected

through discussing with finance manager and management staffs.

Secondary data is collected through company websites, company profile and financial

statements.


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TOOLS USED:

Profitability ratio:

Operating ratio

Operating margin

Return on networth

Operating cash flow ratio

Return on assets.

Financial leverage ratio:

Debt to equity ratio

Debt to capital ratio

Interest coverage ratio


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1) To evaluate the operational efficiency of TATA TELESERVICE with other

circles in southern part on India:

CHURN RATE:

We define our churn as the total number of subscribers who cancel (whether

involuntarily due to non-payment or voluntarily at such subscribers request) from our

service during the period, expressed as a percentage of the number of our subscribers

during the period

Churn total

Churn rate = -------------------------------------- X 100

Open EOP + Gross incremental

YEAR TAMIL NADU ANDRAPRADESH KRANATAKA KERALA2006-07 3.56 2.4 3.22 2.98

2007-08 2.9 1.8 2.35 2.42

CHURN RATE

It is inferred that churn rate is more in Tamilnadu when compared to other circles in

both the years (2006-07 and 2007-08). Where as the churn rate is less in Andhra Pradesh

when compared to other states.

DETERMINATION OF OPERATING PROFIT FOR SOUTHERN CIRCLES:

0

0.5

1

1.5

22.5

3

3.5

4

TamilNadu

AndhraPradesh

Karnataka Kerala

2006-072007-08


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The profit earned from a firm's normal core business operations. This value does not

include any profit earned from the firm's investments (such as earnings from firms in

which the company has partial interest) and the effects of interest and taxes. Also known

as Earning before interest and tax (EBIT).

Profitability is an indication of the efficiency with which the operation of business is

carried on. Poor operational performance may indicate poor scales and hence poor profit.

A lower profitability may arise cue to lack of control over the expenses.

Operating profit = Gross profit Operational expenses

Operating Profit for the year 2006-07:

Result collected directly from the company.

Calculation of Operating Profit for the year 2007-08:

YEAR 2007-08

Gross profit Opex Operating Profit

Tamil Nadu 14464.04 9217.47 5252.57

Andhra Pradesh 27759.99 13877 13883.03

Karnataka 22020.69 9037.9 12982.79

Kerala 6219.05 5537.2 681.4

Results of Operating Profit:


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YEAR TAMIL NADU ANDRAPRADESH KRANATAKA KERALA

2006-07 6655.94 12843.03 10465.4 -1359.62

2007-08 5252.57 13883.03 12982.79 681.4

OPERATING PROFIT

It is inferred that Andhra Pradesh has high operating profit when compared to other

circles in both the years (2006-07 and 2007-08). Kerala has given Low operating profit

during 2006-07, but which has improved during 2007-08.

DETERMINATION OF OPERATING RATIO FOR SOUTHERN CIRCLES:

-4000

-2000

0

2000

4000

6000

8000

10000

12000

14000

16000

2006-07

2007-08

Karnataka KeralaAndhraPradesh

TamilNadu


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Operating ratio measures a firms operating efficiency. The smaller the ratio, the

greater the organization's ability to generate profit if revenues decrease. When using this

ratio, however, investors should be aware that it doesn't take debt repayment or expansion

into account.

Operating Expenses

Operating Ratio = -------------------------

Operating Revenue

Operating Ratio for 2006-07:

Results collected directly from the company.

Calculation of Operating Ratio for 2007-08:

YEAR 2007-08

Operating Exp Operating Revenue Operating Ratio

Tamil Nadu 9217.47 29214.37 0.316

Andhra Pradesh 13876.96 53586.91 0.259

Karnataka 9037.9 36408.31 0.248

Kerala 5537.2 18111.09 0.306

Results for Operating Profit:


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2006-07 0.277 0.22 0.249 0.362

2007-08 0.315 0.262 0.248 0.306

OPERATING RATIO

It is inferred that Karnataka has high operation efficiency in managing its expenses in

the year 2007-08, whereas Andhra Pradesh has effectively managed its expenses in the

year 2006-07 compared to other circles. Kerala showing high Operating ratio during

2006-07, have somehow managed to reduce it in 2007-08.

DETERMINATION OF OPERATING MARGIN FOR SOUTHERN CIRCLES:

0

0.05

0.1

0.150.2

0.25

0.3

0.35

0.4

TamilNadu

AndhraPradesh

Karnataka Kerala

2006-072007-08


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Operating margin is the ratio of operating income to sales revenue. Higher the margin

means that the firm has generated higher income from sales.


2006-07 23.5 26.13 31.48 -11.72007-08 17.97 25.9 35.65 3.76

OPERATING MARGIN

It is inferred that Karnataka has higher operating margin when compared to other

circles both the years (2006-07 and 2007-08).

DETERMINATION OF REVENUE PAID AS ACCESS CHARGES:

-20

-10

0

10

20

30

40

TamilNadu

Karnataka Kerala

2006-07

2007-08

AndhraPradesh


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Access charges are the fees that are paid to telephone networks to access their

networks. Access charges are a form of cost shifting that supports the most expensive

parts of the telephone infrastructure. Individuals pay flat rate access charges (Subscriber

Line Charges or SLCs. These are also known as "customer access line charge" (CALC)

or "end user line charge" (EUCL))

Percentage of Revenue paid as Access Charges:

Access charges

------------------------- X 100

Service revenue

Revenue paid as Access Charges for 2006-07:

Results directly collected from company.

Calculation for Revenue paid as Access charges for 2007-08:

YEAR 2007-08

Access charges Service rev. Revenue paid to access charges

Tamil Nadu 9166.2 34041.05 26.93

Andhra Pradesh 14401.83 64312.98 22.39

Karnataka 9461.99 41789.27 22.64

Kerala 9242.7 18578.51 49.75

Results for Revenue paid on Access Charges:


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2006-07 24.28 23.34 22.79 33.28

2007-08 26.93 22.39 22.64 49.75

ACCESS CHARGES

It is inferred that kerala is paying more for access charges when compared to other

circles in both the years (2006-07 and 2007-08).Whereas Karnataka and Andhra Pradesh

has reduced there Access charges in 2007-08 when compared to 2006-07.

DETERMINATION OF AVERAGE REVENUE PER UNIT (ARPU) ON ACTIVE

SUBSCRIBERS FOR SOUTHERN CIRCLES:

0

10

20

30

40

50

60

TamilNadu

AndhraPradesh

Karnataka Kerala

2006-07

2007-08


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A ratio used to express the profitability of a company on a per-user basis, RPU are

calculated by taking over all revenue and dividing by total number of users.

Service revenue

ARPU = -------------------------

Active subscriber base

This ratio is mainly used by service providers, such as telephone providers. This

measure helps companies to uncovered deficiency and plan strategies for growth. RPU

also helps the company determine which product or service lines produced the most

revenue per customer and therefore which customer relationship are the most important.

ARPU for the year 2006-07:

Results collected directly from company.

Calculation of ARPU for the year 2007-08:

YEAR 2007-08

Service revenue Act. Sub. base ARPU

Tamil Nadu 29214.37 747.233 39.09

Andhra Pradesh 53586.91 18553.372 288.83

Karnataka 36408.32 9628.984 378.11

Kerala 18108.09 4825.262 375.27

Result for ARPU:


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2006-07 328.69 417.82 467.35 366.279

2007-08 39.09 288.83 378.11 375.27

ARPU in Rs

It is inferred that average revenue per user is more in Karnataka when compared to

other circles in both the years (2006-07 and 2007-08). Average revenue per user has

increased in Kerala during 2007-08 when compared to 2006-07. Where as ARPU has

totally gone down in Tamil Nadu for the year 2007-08.

2.) TO EVALUVATE THE PERFORMANCE OF TATA TELE SERVICE

AMONG THE TELECOM COMPETITORS:

0

50100

150

200

250

300

350

400450

500

TamilNadu

AndhraPradesh

Karnataka Kerala

2006-07

2007-08


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To determine the operating margin to competitors

Operating margin gives analysts an idea of how much a company makes (before

interest and taxes) on each dollar of sales. When looking at operating margin to

determine the quality of a company, it is best to look at the change in operating margin

over time and to compare the company's yearly or quarterly figures to those of its

competitors. If a company's margin is increasing, it is earning more per dollar of sales.

The higher the margin, the better.

Calculation of Operating Margin:

YEAR 2007-08

operating income Sales Operating Margin

Air tel 7315.47 17906.54 40.85

Reliance Communication 5513.01 12756.3 43.22

Idea 1465.01 4366.4 33.55

TTSL 953.73 4041.83 23.59

Result for Operation Margin:

Telecom operators Operating margin (%)

Airtel 40.85

Reliance communication 43.2

Idea 33.55

Tata teleservices 23.59


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It is inferred that reliance communication has higher operating margin when compared to

other telecom operators and TTSL has the lowest Operating Margin.

Determination of operating cash flow ratio of competitors

Telecom operators

Operating margin (%)

05

101520253035404550

Airtel Reliance Idea TTSL

OperatingMargin (%)


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Operating cash flow is a measure of how well current liabilities are covered by the

cash flow generated from a companys operations. It is calculated

OCF = Cash flow from operations / Current liabilities

Telecom operators Operating Cash flow ratio

Airtel 0.822


Idea 3.61

Tata teleservices -0.207

It is inferred that idea has generated more cash in order to pay off the short term

liabilities when compared to other operators.

Determination of current ratio of competitors

Telecom operators

Operating cash flow ratio

-0.500.5

11.5

22.5

33.5

4


Operating cashFlow ratio


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A liquidity ratio that measure a companys ability to pay short-term obligations.

Current ratio = Current asset

----------------------

Current liabilities

Calculation of Current Ratio:

YEAR 2007-08

Current Assets Current Liabilities Current Ratio

Air tel 5406.81 9809.83 0.55

Reliance communication 20107.04 6309.33 3.19

Idea 2469.92 2153.03 3.19

TTSL 2447.42 1779.37 1.37

Result for Current Ratio:

Telecom operators Current Ratio

Airtel 0.55


Idea 1.15



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It is inferred that reliance communication has higher current ratio compared to other

telecom operators. The Liquidity ratio is reliable when compared with other Telecom

operators.

Determination of leverage ratio or debt to equity ratio of competitors

Current ratio

00.5

11.5

22.5

33.5


Current ratio


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Any ratio used to calculate the financial leverage of a company to get an idea of the

company's methods of financing or to measure its ability to meet financial obligations.

There are several different ratios, but the main factors looked at include debt, equity,

assets and interest expenses.

A measure of a companys financial leverage calculated by dividing its total liabilities

by stake holders equity. It indicates what proportion of equity and debt the company is

using to finance its assets.

Leverage ratio = Total liabilities

-----------------------

Share holders equity

Calculation for Leverage Ratio:

YEAR 2007-08

TotalLiabilities Shareholders Equity Leverage Ratio

Air tel 16754.08 1895.93 8.83


Idea 6429.66 2592.86 2.48

TTSL 6557.11 285 23

Results for Leverage Ratio:

Telecom operators Leverage Ratio

Airtel 8.83


Idea 2.48

Tata teleservices 23


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It is inferred that Reliance and TTSL has high debt to equity when compared to other

operators. TTSL leads the second position with a great difference while comparing Air

tel and Idea.

Telecom operators

Leverage ratio

05

10152025

303540


Leverage ratio


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To determine the interest coverage ratio of competitors

Interest coverage ratio is a measure of interest paid out of profit earned. It is

calculated by profit before depreciation, interest and tax divided by the interest paid.

Calculation for Interest Coverage Ratio:

YEAR 2007-08

PBDIT Interest Interest coverage Ratio

Air tel 7366.15 282.07 26.11


Idea 1485.94 305.11 4.87

TTSL 1059.56 16.74 63.2

Result for Interest coverage Ratio:

Telecom operators Interest coverage ratio

Airtel 26.11


Idea 4.87



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It is inferred that interest coverage ratio is more for TTLS compared to other telecom

operators. TTSL is acting with greatest justification to the Debentures holders, by paying

interest.

Interest coverage ratio

010203040506070


InterestCoverage ratio


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It is inferred that return on assets in more for Air tel when compared to other telecom

operators. Even though Reliance has more assets when compared to other operators they

are not able to generate more returns through the asset. TTSL gains a nominal return on

its assets.

Return on assets

0

20

40

6080

100

120


Return on assets


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To determine the operating expenses ratio to competitors

Operating expenses ratio is a useful ratio for the measurement of management

efficiency, the operating expense ratio also known as the OER. Operating expenses are

costs associated with the operation and maintenance of income producing properties.

They include such items as property taxes, property management fees, insurance, wages,

utilities, repairs and maintenance, supplies, advertising, attorney fees, accounting fees,

trash removal, pest control, etc. The following are not operating expenses; loan

payments, personal property and capital improvements.

Operating Expenses

Operating Expenses Ratio = -----------------------

Net Sales

YEAR 2007-08

Operating expenses Net Sales Opex Ratio

Air tel 10621.14 17906.54 59.31


Idea 2900.19 4366.4 66.42TTSL 3088.1 4041.83 76.40

Telecom operators Operating expense ratio

Airtel 59.31


Idea 66.42



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It is inferred that operational expenses is more for Tata teleservices compared to other

telecom operators. In order to make more profit TTSL should have more control on its

expenses.

Operating expenses ratio

0102030405060

708090


Operating expensesRatio


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3.) To evaluate the expenses management of Tamilnadu circle with other circles in

southern part of India:

It is evaluated by making use of expenditure / revenue. It is expressed in percentage.

The below table gives the comparison of expense management with other circles.

Expenditure Andhra Pradesh Karnataka Tamilnadu Kerala

Collection Charges 2% 2% 3% 2%

Billing cost 1% 0.8 1% 0.8

Call center charges 2% 2% 1% 3%

Handset charges(including spoilage)

20% 10% 11% 23%

Employee cost 4% 5% 5% 6%

Conveyance 0% 0% 0% 1%

Rent - Network cost 1% 1% 1% 1%

Power & fuel Network

cost4% 3% 4% 6%

Marketing expenses 2% 2% 4% 3%

It is inferred that expenses incurred for hand set subsidy is more in all circles

compared to other expenses.

Kerala circle does not have an efficient management whereas Karnataka has

effectively managed their expenses compared to other circles. Hence Karnataka has

operating margin compared to other circles.

To evaluate the expenses management the expense management of Tata teleservices

among other competitors


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It is evaluated by making use of Expense/Revenue. It is expressed in percentage. The

below table gives the comparison of expenses management with other competitors.

Expenditure Bharti AirtelReliance

communicationIdea Tata indicom

Raw materials 0.30% 0.10% 0.09% 0.03%

Power &fuel cost 0% 2% 2% 1%

Employee cost 6% 5% 6% 6%

Other manufacturing

expenses28% 24% 10% 54%

Selling and

administration22% 22% 0% 9%

Miscellaneous 2% 3% 48% 4%

Interest 2% 4% 7% 0%

Depreciation 13% 14% 15% 9%

It is inferred that manufacturing expenses is more for telecom operators when

compared to other expenses.

Tata teleservices has incurred more manufacturing expenses (54%). When compared

to other competitors. Idea cellular has more miscellaneous expenses where as Bharti

Airtel has effectively managed their expenses when compared to other competitors.

To determine the degree of financial leverage and operating leverage:

Degree of financial leverage (DFL) may be defined as the percentage in earnings that

occurs as a result of a percentage changes in earnings before interest and taxes (PBDIT)


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Operating leverage reflects the extend to which fixed assets and associated fixed costs

are utilized in the business. Degree of operating leverage (DOL) may be as the

percentage change in operating income that occurs as a result of a percentage change in

unit sold.

Degree of operating leverage = (PBDIT + Expenses) / PBDIT

Degree of financial leverage = (PBDIT / (PBDIT Interest)

TELECOM OPERATORS DOL DFL DCL

Airtel 2.44 1.04 2.54

Reliance Communication 2.26 1.09 2.46

Idea 2.95 1.26 3.72

Tata teleservices 3.91 1.02 3.98

It is inferred that Tata teleservices has high degree of combined leverage when

compared to other telecom operators.

FINDINGS

EVALUVATION OF OPERATIONAL EFFICIENCY OF TAMILNADU CIRCLE

WITH OTHER CRCLES IN SOUTHERN PART OF INDIA:


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Kerala circle does not have effective expenses management whereas Karnataka

has effectively managed their expenses compared to other circles.

Karnataka has more operating margin compared to other circles.

In both the financial year 2006-07 and 2007-08 Tamilnadu circle has higher

churn rate when compared to other circles.

Average revenue per line on active Del bases is found comparatively well with

Karnataka in the last year as well as in the current year.

During 2007-08 there was a major drop in ARPU for Tamil Nadu.

Kerala is paying more for access charges when compared to other circles in

both the year (2006-07 and 2007-08).

EVALUVATION OF THE PERFORMANCE OF TATA TELESERVICE AMONG

OTHER COMPETITORS:


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Tata teleservices has incurred more manufacturing expenses (54%) when

compared to other competitors.

Idea cellular has more miscellaneous expenses (48%).

TTSL has good control over its miscellaneous expenses.

Bharti Airtel has effectively managed their expenses when compared to other

competitors.

Reliance communication has higher operating margin (43.2%) compared to

other operators.

Reliance has more operating Margin (43.2%) and TTSL ahs the least

(23.59%).

Reliance has higher current ratio (3.19) compared to other operators

.

TTSL pays more interest coverage ratio, which shows its truthfulness towards

debenture holders.

SUGGESTIONS

EVALUVATION OF OPERATIONAL EFFICIENCY OF TAMILNADU

CIRCLES IN SOUTHERN PART OF INDIA:


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Tata teleservices should minimize the expenses and should concentrate on

retaining the subscribers by introducing attractive schemes and should have

optimum leverage ratio and should follow effective cost strategy.

CONCLUSION

In the present scenario, the success and failure of any product or institution is basically

depends upon the satisfaction of the customers. In case of Tata teleservices, who is the

first CDMA service provider, should concentrate much on satisfactory level of the


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customers. The companys profitability mainly affected by operational expenses, access

charges and attrition of the customers. Therefore, the company should concentrate on

reducing the access charge, operating cost, acquiring & do all the need full in retaining

the customers and also should concentrate on profitability of the company by reducing its

expenses, as it acts as the important factor influencing the capital structure.

BIBLIOGRAPHY

1. Kothari, C.R. Research methodology (2002), Second edition, Vishva Prakasham,

New Delhi.


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2. Financial analysis of telecom industry of china and India (2006), Telecom

Regulatory Authority of India (TRAI).

3. George Paul (1985), A comparatively study of Diversified and Non-diversified

companies, Journal of financial economies, Vol 9, pg 30-39.

4. Anthony H. Catanach Jr. (2000). An empirical study of operating cash flow

usefulness in predicting savings and loan financial distress, Advance in

accounting, Vol 17, pg 1-30.

WEB SITES

Company profile, retrieved, from Tata Teleservices website:

www.tataindicom.com/t-aboutus-organisation.aspx

Accounting terms, Retrieved from venture line website:

www.ventureline.com/glossary_A.asp

Financial leverage, Retrieved from investopedia website:

www.investopedia.com.
http://www.tataindicom.com/t-aboutus-organisation.aspxhttp://www.ventureline.com/glossary_A.asphttp://www.tataindicom.com/t-aboutus-organisation.aspxhttp://www.ventureline.com/glossary_A.asp

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